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Builders FirstSource (BLDR) Crossed Above the 200-Day Moving Average: What That Means for Investors
Builders FirstSource (BLDR - Free Report) is looking like an interesting pick from a technical perspective, as the company reached a key level of support. Recently, BLDR crossed above the 200-day moving average, suggesting a long-term bullish trend.
The 200-day simple moving average is a useful tool for traders and analysts, establishing market trends for stocks, commodities, indexes, and other financial instruments over the long term. The marker moves higher or lower along with longer-term price moves, and serves as a support or resistance level.
BLDR could be on the verge of another rally after moving 9.4% higher over the last four weeks. Plus, the company is currently a Zacks Rank #3 (Hold) stock.
The bullish case only gets stronger once investors take into account BLDR's positive earnings estimate revisions. There have been 5 higher compared to none lower for the current fiscal year, and the consensus estimate has moved up as well.
Given this move in earnings estimate revisions and the positive technical factor, investors may want to keep their eye on BLDR for more gains in the near future.