After reaching an important support level, Daqo New Energy (DQ) could be a good stock pick from a technical perspective. DQ surpassed resistance at the 200-day moving average, suggesting a long-term bullish trend.
The 200-day simple moving average is a useful tool for traders and analysts, establishing market trends for stocks, commodities, indexes, and other financial instruments over the long term. The marker moves higher or lower along with longer-term price moves, and serves as a support or resistance level.
Shares of DQ have been moving higher over the past four weeks, up 36.7%. Plus, the company is currently a Zacks Rank #3 (Hold) stock, suggesting that DQ could be poised for a continued surge.
The bullish case only gets stronger once investors take into account DQ's positive earnings estimate revisions. There have been 2 higher compared to none lower for the current fiscal year, 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 DQ for more gains in the near future.
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DAQO New Energy Corp. (DQ) : Free Stock Analysis Report
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