A10 Networks (ATEN) Crossed Above the 50-Day Moving Average: What That Means for Investors
A10 Networks (ATEN) reached a significant support level, and could be a good pick for investors from a technical perspective. Recently, ATEN broke through the 50-day moving average, which suggests a short-term bullish trend.
The 50-day simple moving average, which is one of three major moving averages, is widely used by traders and analysts to establish support and resistance levels for a range of securities. Because it's the first sign of an up or down trend, the 50-day is considered to be more important.
ATEN could be on the verge of another rally after moving 11% higher over the last four weeks. Plus, the company is currently a Zacks Rank #2 (Buy) stock.
Once investors consider ATEN'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 ATEN for more gains in the near future.
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