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Ericsson (ERIC) Crossed Above the 200-Day Moving Average: What That Means for Investors
Ericsson (ERIC - Free Report) is looking like an interesting pick from a technical perspective, as the company reached a key level of support. Recently, ERIC crossed above the 200-day moving average, suggesting a long-term bullish trend.
The 200-day simple moving average is widely-used by traders and analysts, and helps establish market trends for stocks, commodities, indexes, and other financial instruments over the long term. The indicator moves higher or lower together with longer-term price moves, serving as a support or resistance level.
Over the past four weeks, ERIC has gained 5.9%. The company is currently ranked a Zacks Rank #2 (Buy), another strong indication the stock could move even higher.
The bullish case only gets stronger once investors take into account ERIC's positive earnings estimate revisions. There have been 2 higher compared to none lower for the current fiscal year, and the consensus estimate has moved up as well.
Investors should think about putting ERIC on their watchlist given the ultra-important technical indicator and positive move in earnings estimate revisions.