East West Bancorp (EWBC) Crossed Above the 20-Day Moving Average: What That Means for Investors
East West Bancorp (EWBC) is looking like an interesting pick from a technical perspective, as the company reached a key level of support. Recently, EWBC crossed above the 20-day moving average, suggesting a short-term bullish trend.
The 20-day simple moving average is a well-liked trading tool because it provides a look back at a stock's price over a 20-day period. Additionally, short-term traders find this SMA very beneficial, as it smooths out short-term price trends and shows more trend reversal signals than longer-term moving averages.
The 20-day moving average can show signals that are similar to other SMAs as well. 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.
EWBC has rallied 6.1% over the past four weeks, and the company is a Zacks Rank #2 (Buy) at the moment. This combination suggests EWBC could be on the verge of another move higher.
Looking at EWBC's earnings estimate revisions, investors will be even more convinced of the bullish uptrend. There have been 2 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 EWBC for more gains in the near future.
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East West Bancorp, Inc. (EWBC) : Free Stock Analysis Report
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