ASML (ASML) reached a significant support level, and could be a good pick for investors from a technical perspective. Recently, ASML 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.
The 20-day moving average can show signals that are similar to other SMAs as well. 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.
ASML could be on the verge of another rally after moving 9.2% 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 ASML's positive earnings estimate revisions. There have been 7 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 ASML on their watchlist given the ultra-important technical indicator and positive move in earnings estimate revisions.
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ASML Holding N.V. (ASML) : Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).
