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Unity Software Inc. (U) Crossed Above the 200-Day Moving Average: What That Means for Investors
After reaching an important support level, Unity Software Inc. (U - Free Report) could be a good stock pick from a technical perspective. U surpassed resistance at the 200-day moving average, suggesting a long-term bullish trend.
The 200-day simple moving average helps traders and analysts determine overall long-term market trends for stocks, commodities, indexes, and other financial instruments. The indicator moves higher or lower along with longer-term price moves, serving as a support or resistance level.
Shares of U have been moving higher over the past four weeks, up 28.1%. Plus, the company is currently a Zacks Rank #2 (Buy) stock, suggesting that U could be poised for a continued surge.
The bullish case only gets stronger once investors take into account U's positive earnings estimate revisions. There have been 7 higher compared to none lower for the current fiscal year, and the consensus estimate has moved up as well.
With a winning combination of earnings estimate revisions and hitting a key technical level, investors should keep their eye on U for more gains in the near future.