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Napco (NSSC) Just Reclaimed 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 a useful tool for traders and analysts, establishing market trends for stocks, commodities, indexes, and other financial instruments over the long term. The marker moves higher or lower along with longer-term price moves, and serves as a support or resistance level.

NSSC has rallied 11.9% over the past four weeks, and the company is a Zacks Rank #2 (Buy) at the moment. This combination suggests NSSC could be on the verge of another move higher.

The bullish case solidifies once investors consider NSSC'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.

Investors may want to watch NSSC for more gains in the near future given the company's key technical level and positive earnings estimate revisions.

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