89BIO (ETNB) Recently Broke Out Above the 20-Day Moving Average
After reaching an important support level, 89BIO (ETNB) could be a good stock pick from a technical perspective. ETNB surpassed resistance at the 20-day moving average, suggesting 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.
Similar to other SMAs, if a stock's price moves above the 20-day, the trend is considered positive, while price falling below the moving average can signal a downward trend.
Shares of ETNB have been moving higher over the past four weeks, up 11.4%. Plus, the company is currently a Zacks Rank #2 (Buy) stock, suggesting that ETNB could be poised for a continued surge.
The bullish case solidifies once investors consider ETNB'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.
With a winning combination of earnings estimate revisions and hitting a key technical level, investors should keep their eye on ETNB for more gains in the near future.
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89BIO (ETNB) : Free Stock Analysis Report
