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Analog Devices (ADI) Recently Broke Out Above the 50-Day Moving Average
After reaching an important support level, Analog Devices (ADI - Free Report) could be a good stock pick from a technical perspective. ADI surpassed resistance at the 50-day moving average, suggesting a short-term bullish trend.
The 50-day simple moving average is one of three major moving averages used by traders and analysts to determine support or resistance levels for a wide range of securities. But the 50-day is considered to be more important because it's the first marker of an up or down trend.
Shares of ADI have been moving higher over the past four weeks, up 6.1%. Plus, the company is currently a Zacks Rank #3 (Hold) stock, suggesting that ADI could be poised for a continued surge.
Once investors consider ADI's positive earnings estimate revisions, the bullish case only solidifies. No estimate has gone lower in the past two months for the current fiscal year, compared to 1 higher, and the consensus estimate has increased as well.
Investors may want to watch ADI for more gains in the near future given the company's key technical level and positive earnings estimate revisions.