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Zscaler (ZS) Crossed Above the 50-Day Moving Average: What That Means for Investors
After reaching an important support level, Zscaler (ZS - Free Report) could be a good stock pick from a technical perspective. ZS 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.
ZS could be on the verge of another rally after moving 13.8% higher over the last four weeks. Plus, the company is currently a Zacks Rank #2 (Buy) stock.
The bullish case only gets stronger once investors take into account ZS's positive earnings estimate revisions. There have been 12 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 ZS for more gains in the near future.