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Steel Dynamics (STLD) Crossed Above the 50-Day Moving Average: What That Means for Investors
Steel Dynamics (STLD - Free Report) reached a significant support level, and could be a good pick for investors from a technical perspective. Recently, STLD broke through the 50-day moving average, which suggests a short-term bullish trend.
One of the three major moving averages, the 50-day simple moving average is commonly used by traders and analysts to determine support or resistance levels for different types of securities. However, the 50-day is considered to be more important since it's the first marker of an up or down trend.
STLD has rallied 5.1% over the past four weeks, and the company is a Zacks Rank #3 (Hold) at the moment. This combination suggests STLD could be on the verge of another move higher.
Once investors consider STLD'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 4 higher, and the consensus estimate has increased as well.
Investors should think about putting STLD on their watchlist given the ultra-important technical indicator and positive move in earnings estimate revisions.