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UGI (UGI) Crossed Above the 50-Day Moving Average: What That Means for Investors
After reaching an important support level, UGI (UGI - Free Report) could be a good stock pick from a technical perspective. UGI surpassed resistance at 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.
Shares of UGI have been moving higher over the past four weeks, up 5.9%. Plus, the company is currently a Zacks Rank #2 (Buy) stock, suggesting that UGI could be poised for a continued surge.
The bullish case solidifies once investors consider UGI'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 UGI for more gains in the near future.