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NXP Semiconductors (NXPI) Just Overtook the 20-Day Moving Average

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From a technical perspective, NXP Semiconductors (NXPI - Free Report) is looking like an interesting pick, as it just reached a key level of support. NXPI recently overtook the 20-day moving average, and this suggests a short-term bullish trend.

The 20-day simple moving average is a well-liked trading tool because it provides a look back at a stock's price over a 20-day period. Additionally, short-term traders find this SMA very beneficial, as it smooths out short-term price trends and shows 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 NXPI

Shares of NXPI have been moving higher over the past four weeks, up 6.3%. Plus, the company is currently a Zacks Rank #2 (Buy) stock, suggesting that NXPI could be poised for a continued surge.

Once investors consider NXPI's positive earnings estimate revisions, the bullish case only solidifies. No earnings estimate has been lowered in the past two months, compared to 12 raised estimates, for the current fiscal year, and the consensus estimate has increased as well.

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


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