Bilibili (BILI) Just Overtook the 20-Day Moving Average
From a technical perspective, Bilibili (BILI) is looking like an interesting pick, as it just reached a key level of support. BILI recently overtook the 20-day moving average, and this 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.
Like other SMAs, 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.
BILI has rallied 5.5% over the past four weeks, and the company is a Zacks Rank #2 (Buy) at the moment. This combination suggests BILI could be on the verge of another move higher.
The bullish case solidifies once investors consider BILI'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.
Given this move in earnings estimate revisions and the positive technical factor, investors may want to keep their eye on BILI for more gains in the near future.
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