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Commercial Metals (CMC) Crossed Above the 50-Day Moving Average: What That Means for Investors
Commercial Metals (CMC - Free Report) reached a significant support level, and could be a good pick for investors from a technical perspective. Recently, CMC broke through the 50-day moving average, which suggests a short-term bullish trend.
The 50-day simple moving average, which is one of three major moving averages, is widely used by traders and analysts to establish support and resistance levels for a range of securities. Because it's the first sign of an up or down trend, the 50-day is considered to be more important.
Shares of CMC have been moving higher over the past four weeks, up 8.3%. Plus, the company is currently a Zacks Rank #1 (Strong Buy) stock, suggesting that CMC could be poised for a continued surge.
Looking at CMC's earnings estimate revisions, investors will be even more convinced of the bullish uptrend. There have been 2 higher compared to none lower for the current fiscal year, and the consensus estimate has moved up as well.
With a winning combination of earnings estimate revisions and hitting a key technical level, investors should keep their eye on CMC for more gains in the near future.