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XPO Logistics (XPO) Just Reclaimed the 50-Day Moving Average
After reaching an important support level, XPO Logistics (XPO - Free Report) could be a good stock pick from a technical perspective. XPO surpassed resistance at the 50-day moving average, suggesting a short-term bullish trend.
The 50-day simple moving average, which is one of three major moving averages, is widely used by traders and analysts to establish support and resistance levels for a range of securities. Because it's the first sign of an up or down trend, the 50-day is considered to be more important.
Over the past four weeks, XPO has gained 5.2%. The company is currently ranked a Zacks Rank #1 (Strong Buy), another strong indication the stock could move even higher.
The bullish case solidifies once investors consider XPO's positive earnings estimate revisions. No estimate has gone lower in the past two months for the current fiscal year, compared to 11 higher, while the consensus estimate has increased too.
Investors may want to watch XPO for more gains in the near future given the company's key technical level and positive earnings estimate revisions.