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From a technical perspective, Danaos (DAC) is looking like an interesting pick, as it just reached a key level of support. DAC recently overtook the 20-day moving average, and this suggests 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.
Shares of DAC have been moving higher over the past four weeks, up 8%. Plus, the company is currently a Zacks Rank #2 (Buy) stock, suggesting that DAC could be poised for a continued surge.
Looking at DAC's earnings estimate revisions, investors will be even more convinced of the bullish uptrend. There have been 1 revisions higher for the current fiscal year compared to none lower, and the consensus estimate has moved up as well.
With a winning combination of earnings estimate revisions and hitting a key technical level, investors should keep their eye on DAC for more gains in the near future.
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