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Steel Dynamics (STLD) Recently Broke Out Above the 50-Day Moving Average
Steel Dynamics (STLD - Free Report) is looking like an interesting pick from a technical perspective, as the company reached a key level of support. Recently, STLD broke out above the 50-day moving average, suggesting a short-term bullish trend.
The 50-day simple moving average is a widely used technical indicator that helps determine support or resistance levels for different types of securities. It's one of three major moving averages, but takes precedent because it's the first sign of an up or down trend.
Over the past four weeks, STLD has gained 6.1%. The company is currently ranked a Zacks Rank #3 (Hold), another strong indication the stock could move even higher.
The bullish case solidifies once investors consider STLD'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.
With a winning combination of earnings estimate revisions and hitting a key technical level, investors should keep their eye on STLD for more gains in the near future.