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KLA (KLAC) Recently Broke Out Above the 50-Day Moving Average
KLA (KLAC - Free Report) is looking like an interesting pick from a technical perspective, as the company reached a key level of support. Recently, KLAC broke out above 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.
KLAC could be on the verge of another rally after moving 21.1% higher over the last four weeks. Plus, the company is currently a Zacks Rank #2 (Buy) stock.
The bullish case only gets stronger once investors take into account KLAC's positive earnings estimate revisions. There have been 10 higher compared to none lower for the current fiscal year, and the consensus estimate has moved up as well.
Given this move in earnings estimate revisions and the positive technical factor, investors may want to keep their eye on KLAC for more gains in the near future.