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Synopsys (SNPS) Recently Broke Out Above the 50-Day Moving Average
From a technical perspective, Synopsys (SNPS - Free Report) is looking like an interesting pick, as it just reached a key level of support. SNPS recently overtook the 50-day moving average, and this suggests a short-term bullish trend.
The 50-day simple moving average is a widely used technical indicator that helps determine support or resistance levels for different types of securities. It's one of three major moving averages, but takes precedent because it's the first sign of an up or down trend.
SNPS could be on the verge of another rally after moving 10.6% higher over the last four weeks. Plus, the company is currently a Zacks Rank #2 (Buy) stock.
Once investors consider SNPS'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 4 higher, and the consensus estimate has increased as well.
With a winning combination of earnings estimate revisions and hitting a key technical level, investors should keep their eye on SNPS for more gains in the near future.