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Gerdau (GGB) Just Overtook the 50-Day Moving Average
Gerdau (GGB - Free Report) reached a significant support level, and could be a good pick for investors from a technical perspective. Recently, GGB broke through the 50-day moving average, which suggests a short-term bullish trend.
One of the three major moving averages, the 50-day simple moving average is commonly used by traders and analysts to determine support or resistance levels for different types of securities. However, the 50-day is considered to be more important since it's the first marker of an up or down trend.
GGB could be on the verge of another rally after moving 5.4% higher over the last four weeks. Plus, the company is currently a Zacks Rank #3 (Hold) stock.
The bullish case solidifies once investors consider GGB's positive earnings estimate revisions. No estimate has gone lower in the past two months for the current fiscal year, compared to 2 higher, while the consensus estimate has increased too.
Investors may want to watch GGB for more gains in the near future given the company's key technical level and positive earnings estimate revisions.