ASML (ASML) Just Overtook the 20-Day Moving Average

ASML (ASML) reached a significant support level, and could be a good pick for investors from a technical perspective. Recently, ASML broke through the 20-day moving average, which suggests a short-term bullish trend.

The 20-day simple moving average is a popular investing tool. Traders like this SMA because it offers a look back at a stock's price over a shorter period and helps smooth out price fluctuations. The 20-day can also show more trend reversal signals than longer-term moving averages.

Similar to other SMAs, if a stock's price moves above the 20-day, the trend is considered positive, while price falling below the moving average can signal a downward trend.

Shares of ASML have been moving higher over the past four weeks, up 6.5%. Plus, the company is currently a Zacks Rank #2 (Buy) stock, suggesting that ASML could be poised for a continued surge.

Once investors consider ASML's positive earnings estimate revisions, the bullish case only solidifies. No earnings estimate has been lowered in the past two months, compared to 2 raised estimates, for the current fiscal year, and the consensus estimate has increased as well.

Investors should think about putting ASML on their watchlist given the ultra-important technical indicator and positive move in earnings estimate revisions.

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This article originally published on Zacks Investment Research (zacks.com).

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