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Hello Group Inc. Sponsored ADR (MOMO) Crossed Above the 50-Day Moving Average: What That Means for Investors
After reaching an important support level, Hello Group Inc. Sponsored ADR (MOMO - Free Report) could be a good stock pick from a technical perspective. MOMO surpassed resistance at the 50-day moving average, suggesting a short-term bullish trend.
The 50-day simple moving average is one of three major moving averages used by traders and analysts to determine support or resistance levels for a wide range of securities. But the 50-day is considered to be more important because it's the first marker of an up or down trend.
Shares of MOMO have been moving higher over the past four weeks, up 8.1%. Plus, the company is currently a Zacks Rank #1 (Strong Buy) stock, suggesting that MOMO could be poised for a continued surge.
The bullish case only gets stronger once investors take into account MOMO's positive earnings estimate revisions. There have been 1 higher compared to none lower for the current fiscal year, and the consensus estimate has moved up as well.
Investors should think about putting MOMO on their watchlist given the ultra-important technical indicator and positive move in earnings estimate revisions.