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Schnitzer Steel (SCHN) reached a significant support level, and could be a good pick for investors from a technical perspective. Recently, SCHN broke through the 50-day moving average, which suggests a short-term bullish trend.
The 50-day simple moving average is one of three major moving averages used by traders and analysts to determine support or resistance levels for a wide range of securities. But the 50-day is considered to be more important because it's the first marker of an up or down trend.
Shares of SCHN have been moving higher over the past four weeks, up 7.2%. Plus, the company is currently a Zacks Rank #1 (Strong Buy) stock, suggesting that SCHN could be poised for a continued surge.
Once investors consider SCHN'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 1 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 SCHN for more gains in the near future.
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Schnitzer Steel Industries, Inc. (SCHN) : Free Stock Analysis Report
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