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ModivCare (MODV) Crossed Above the 50-Day Moving Average: What That Means for Investors
From a technical perspective, ModivCare (MODV - Free Report) is looking like an interesting pick, as it just reached a key level of support. MODV recently overtook the 50-day moving average, and this 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.
MODV could be on the verge of another rally after moving 5.3% higher over the last four weeks. Plus, the company is currently a Zacks Rank #1 (Strong Buy) stock.
Once investors consider MODV's positive earnings estimate revisions, the bullish case only solidifies. No estimate has gone lower in the past two months for the current fiscal year, compared to 2 higher, and the consensus estimate has increased as well.
Investors should think about putting MODV on their watchlist given the ultra-important technical indicator and positive move in earnings estimate revisions.