Emerson Electric (EMR) Just Reclaimed the 20-Day Moving Average
From a technical perspective, Emerson Electric (EMR) is looking like an interesting pick, as it just reached a key level of support. EMR 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.
EMR could be on the verge of another rally after moving 7.2% higher over the last four weeks. Plus, the company is currently a Zacks Rank #1 (Strong Buy) stock.
The bullish case solidifies once investors consider EMR's positive earnings estimate revisions. No estimate has gone lower in the past two months for the current fiscal year, compared to 9 higher, while the consensus estimate has increased too.
Investors may want to watch EMR for more gains in the near future given the company's key technical level and positive earnings estimate revisions.
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Emerson Electric Co. (EMR) : Free Stock Analysis Report
