After reaching an important support level, Pure Storage (PSTG) could be a good stock pick from a technical perspective. PSTG 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.
Shares of PSTG have been moving higher over the past four weeks, up 10.5%. Plus, the company is currently a Zacks Rank #3 (Hold) stock, suggesting that PSTG could be poised for a continued surge.
Once investors consider PSTG's positive earnings estimate revisions, the bullish case only solidifies. No estimate has gone lower in the past two months for the current fiscal year, compared to 10 higher, and the consensus estimate has increased as well.
Given this move in earnings estimate revisions and the positive technical factor, investors may want to 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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