Shake Shack (SHAK) Just Overtook the 20-Day Moving Average
After reaching an important support level, Shake Shack (SHAK) could be a good stock pick from a technical perspective. SHAK surpassed resistance at the 20-day moving average, suggesting a short-term bullish trend.
A well-liked tool among traders, the 20-day simple moving average offers a look back at a stock's price over a 20-day period. This is very beneficial to short-term traders, as it smooths out short-term price trends and gives 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.
SHAK could be on the verge of another rally after moving 20.4% higher over the last four weeks. Plus, the company is currently a Zacks Rank #2 (Buy) stock.
Looking at SHAK's earnings estimate revisions, investors will be even more convinced of the bullish uptrend. There have been 12 revisions higher for the current fiscal year compared to none lower, and the consensus estimate has moved up as well.
Given this move in earnings estimate revisions and the positive technical factor, investors may want to keep their eye on SHAK for more gains in the near future.
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Shake Shack, Inc. (SHAK) : Free Stock Analysis Report
