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Napco (NSSC) Recently Broke Out Above the 200-Day Moving Average

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After reaching an important support level, Napco (NSSC - Free Report) could be a good stock pick from a technical perspective. NSSC surpassed resistance at 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, NSSC has gained 13.4%. The company is currently ranked a Zacks Rank #2 (Buy), another strong indication the stock could move even higher.

Once investors consider NSSC's positive earnings estimate revisions, the bullish case only solidifies. No estimate has gone lower in the past two months for the current fiscal year, compared to 1 higher, and the consensus estimate has increased as well.

With a winning combination of earnings estimate revisions and hitting a key technical level, investors should keep their eye on NSSC for more gains in the near future.

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