Cognex Corporation (CGNX) Just Reclaimed the 20-Day Moving Average
After reaching an important support level, Cognex Corporation (CGNX) could be a good stock pick from a technical perspective. CGNX surpassed resistance at the 20-day moving average, suggesting a short-term bullish trend.
A well-liked tool among traders, the 20-day simple moving average offers a look back at a stock's price over a 20-day period. This is very beneficial to short-term traders, as it smooths out short-term price trends and gives 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.
CGNX has rallied 7.1% over the past four weeks, and the company is a Zacks Rank #3 (Hold) at the moment. This combination suggests CGNX could be on the verge of another move higher.
The bullish case only gets stronger once investors take into account CGNX's positive earnings estimate revisions. There have been 4 revisions higher for the current fiscal year compared to none lower, and the consensus estimate has moved up as well.
Given this move in earnings estimate revisions and the positive technical factor, investors may want to keep their eye on CGNX for more gains in the near future.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Cognex Corporation (CGNX) : Free Stock Analysis Report
To read this article on Zacks.com click here.