Overstock.com (OSTK) Just Reclaimed the 200-Day Moving Average
Overstock.com (OSTK) is looking like an interesting pick from a technical perspective, as the company reached a key level of support. Recently, OSTK crossed above the 200-day moving average, suggesting a long-term bullish trend.
A useful tool for traders and analysts, the 200-day simple moving average helps determine long-term market trends for stocks, commodities, indexes, and other financial instruments. It moves higher or lower in conjunction with longer-term price performance, and serves as a support or resistance level.
OSTK could be on the verge of another rally after moving 8.2% higher over the last four weeks. Plus, the company is currently a Zacks Rank #3 (Hold) stock.
The bullish case solidifies once investors consider OSTK'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.
Given this move in earnings estimate revisions and the positive technical factor, investors may want to keep their eye on OSTK for more gains in the near future.
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