Back to top

Image: Bigstock

Acuity Brands (AYI) Just Reclaimed the 20-Day Moving Average

Read MoreHide Full Article

Acuity Brands (AYI - Free Report) is looking like an interesting pick from a technical perspective, as the company reached a key level of support. Recently, AYI crossed above the 20-day moving average, suggesting a short-term bullish trend.

A well-liked tool among traders, the 20-day simple moving average offers a look back at a stock's price over a 20-day period. This is very beneficial to short-term traders, as it smooths out short-term price trends and gives more trend reversal signals than longer-term moving averages.

Like other SMAs, if a stock's price is moving above the 20-day, the trend is considered positive. When the price falls below the moving average, it can signal a downward trend.

Moving Average Chart for AYI

Shares of AYI 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 AYI could be poised for a continued surge.

The bullish case solidifies once investors consider AYI's positive earnings estimate revisions. No estimate has gone lower in the past two months for the current fiscal year, compared to 1 higher, while the consensus estimate has increased too.

Given this move in earnings estimate revisions and the positive technical factor, investors may want to keep their eye on AYI for more gains in the near future.

In-Depth Zacks Research for the Tickers Above

Normally $25 each - click below to receive one report FREE:

Acuity Brands Inc (AYI) - free report >>

Published in