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Shockwave Medical (SWAV) Crossed Above the 50-Day Moving Average: What That Means for Investors
After reaching an important support level, Shockwave Medical (SWAV - Free Report) could be a good stock pick from a technical perspective. SWAV surpassed resistance at the 50-day moving average, suggesting a short-term bullish trend.
The 50-day simple moving average is a widely used technical indicator that helps determine support or resistance levels for different types of securities. It's one of three major moving averages, but takes precedent because it's the first sign of an up or down trend.
SWAV has rallied 9.9% over the past four weeks, and the company is a Zacks Rank #1 (Strong Buy) at the moment. This combination suggests SWAV could be on the verge of another move higher.
The bullish case solidifies once investors consider SWAV's positive earnings estimate revisions. No estimate has gone lower in the past two months for the current fiscal year, compared to 1 higher, while the consensus estimate has increased too.
With a winning combination of earnings estimate revisions and hitting a key technical level, investors should keep their eye on SWAV for more gains in the near future.