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Gerdau (GGB) Crossed Above the 50-Day Moving Average: What That Means for Investors
Gerdau (GGB - Free Report) is looking like an interesting pick from a technical perspective, as the company reached a key level of support. Recently, GGB broke out above the 50-day moving average, suggesting a short-term bullish trend.
The 50-day simple moving average, which is one of three major moving averages, is widely used by traders and analysts to establish support and resistance levels for a range of securities. Because it's the first sign of an up or down trend, the 50-day is considered to be more important.
GGB could be on the verge of another rally after moving 11.9% higher over the last four weeks. Plus, the company is currently a Zacks Rank #2 (Buy) stock.
Once investors consider GGB'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 1 higher, and the consensus estimate has increased as well.
Investors may want to watch GGB for more gains in the near future given the company's key technical level and positive earnings estimate revisions.