Monolithic Power (MPWR) Recently Broke Out Above the 20-Day Moving Average
Monolithic Power (MPWR) is looking like an interesting pick from a technical perspective, as the company reached a key level of support. Recently, MPWR 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.
Similar to other SMAs, if a stock's price moves above the 20-day, the trend is considered positive, while price falling below the moving average can signal a downward trend.
MPWR has rallied 11.8% over the past four weeks, and the company is a Zacks Rank #2 (Buy) at the moment. This combination suggests MPWR could be on the verge of another move higher.
Looking at MPWR's earnings estimate revisions, investors will be even more convinced of the bullish uptrend. There have been 8 revisions higher for the current fiscal year compared to none lower, and the consensus estimate has moved up as well.
Investors should think about putting MPWR on their watchlist given the ultra-important technical indicator and positive move in earnings estimate revisions.
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Monolithic Power Systems, Inc. (MPWR) : Free Stock Analysis Report
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