Gerdau (GGB) Just Reclaimed the 50-Day Moving Average
Gerdau (GGB) is looking like an interesting pick from a technical perspective, as the company reached a key level of support. Recently, GGB broke out above the 50-day moving average, suggesting a short-term bullish trend.
One of the three major moving averages, the 50-day simple moving average is commonly used by traders and analysts to determine support or resistance levels for different types of securities. However, the 50-day is considered to be more important since it's the first marker of an up or down trend.
Shares of GGB have been moving higher over the past four weeks, up 8%. Plus, the company is currently a Zacks Rank #2 (Buy) stock, suggesting that GGB could be poised for a continued surge.
The bullish case solidifies once investors consider GGB's positive earnings estimate revisions. No estimate has gone lower in the past two months for the current fiscal year, compared to 2 higher, while the consensus estimate has increased too.
Investors should think about putting GGB on their watchlist given the ultra-important technical indicator and positive move in earnings estimate revisions.
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