Pure Storage (PSTG) Crossed Above the 20-Day Moving Average: What That Means for Investors
Pure Storage (PSTG) is looking like an interesting pick from a technical perspective, as the company reached a key level of support. Recently, PSTG crossed above the 20-day moving average, suggesting a short-term bullish trend.
The 20-day simple moving average is a popular investing tool. Traders like this SMA because it offers a look back at a stock's price over a shorter period and helps smooth out price fluctuations. The 20-day can also show 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.
Over the past four weeks, PSTG has gained 26%. The company is currently ranked a Zacks Rank #3 (Hold), another strong indication the stock could move even higher.
Once investors consider PSTG's positive earnings estimate revisions, the bullish case only solidifies. No earnings estimate has been lowered in the past two months, compared to 10 raised estimates, for the current fiscal year, and the consensus estimate has increased as well.
With a winning combination of earnings estimate revisions and hitting a key technical level, investors should keep their eye on PSTG for more gains in the near future.
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Pure Storage, Inc. (PSTG) : Free Stock Analysis Report
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