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Magna (MGA) Just Reclaimed the 20-Day Moving Average
Magna (MGA - Free Report) reached a significant support level, and could be a good pick for investors from a technical perspective. Recently, MGA broke through the 20-day moving average, which suggests a short-term bullish trend.
The 20-day simple moving average is a popular trading tool. It provides a look back at a stock's price over a 20-day period, and is beneficial to short-term traders since it smooths out price fluctuations and provides more trend reversal signals than longer-term moving averages.
Like other SMAs, if a stock's price is moving above the 20-day, the trend is considered positive. When the price falls below the moving average, it can signal a downward trend.
MGA could be on the verge of another rally after moving 8.1% higher over the last four weeks. Plus, the company is currently a Zacks Rank #2 (Buy) stock.
Looking at MGA's earnings estimate revisions, investors will be even more convinced of the bullish uptrend. There have been 3 revisions higher for the current fiscal year compared to none lower, and the consensus estimate has moved up as well.
Investors should think about putting MGA on their watchlist given the ultra-important technical indicator and positive move in earnings estimate revisions.