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Consolidated Edison (ED) Recently Broke Out Above the 50-Day Moving Average
After reaching an important support level, Consolidated Edison (ED - Free Report) could be a good stock pick from a technical perspective. ED surpassed resistance at the 50-day moving average, suggesting 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.
Shares of ED have been moving higher over the past four weeks, up 10.7%. Plus, the company is currently a Zacks Rank #3 (Hold) stock, suggesting that ED could be poised for a continued surge.
The bullish case solidifies once investors consider ED's positive earnings estimate revisions. No estimate has gone lower in the past two months for the current fiscal year, compared to 3 higher, while the consensus estimate has increased too.
Given this move in earnings estimate revisions and the positive technical factor, investors may want to keep their eye on ED for more gains in the near future.