Lovesac (LOVE) Crossed Above the 50-Day Moving Average: What That Means for Investors
After reaching an important support level, Lovesac (LOVE) could be a good stock pick from a technical perspective. LOVE surpassed resistance at the 50-day moving average, suggesting a short-term bullish trend.
The 50-day simple moving average, which is one of three major moving averages, is widely used by traders and analysts to establish support and resistance levels for a range of securities. Because it's the first sign of an up or down trend, the 50-day is considered to be more important.
LOVE could be on the verge of another rally after moving 15.3% higher over the last four weeks. Plus, the company is currently a Zacks Rank #2 (Buy) stock.
The bullish case solidifies once investors consider LOVE's positive earnings estimate revisions. No estimate has gone lower in the past two months for the current fiscal year, compared to 1 higher, while the consensus estimate has increased too.
Investors may want to watch LOVE for more gains in the near future given the company's key technical level and positive earnings estimate revisions.
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The Lovesac Company (LOVE) : Free Stock Analysis Report
