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Roku (ROKU) Recently Broke Out Above the 50-Day Moving Average
From a technical perspective, Roku (ROKU - Free Report) is looking like an interesting pick, as it just reached a key level of support. ROKU recently overtook the 50-day moving average, and this suggests a short-term bullish trend.
The 50-day simple moving average is one of three major moving averages used by traders and analysts to determine support or resistance levels for a wide range of securities. But the 50-day is considered to be more important because it's the first marker of an up or down trend.
ROKU could be on the verge of another rally after moving 9% higher over the last four weeks. Plus, the company is currently a Zacks Rank #1 (Strong Buy) stock.
The bullish case solidifies once investors consider ROKU's positive earnings estimate revisions. No estimate has gone lower in the past two months for the current fiscal year, compared to 4 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 ROKU for more gains in the near future.