Zoom Video Communications (ZM) Just Flashed Golden Cross Signal: Do You Buy?
Zoom Video Communications (ZM) is looking like an interesting pick from a technical perspective, as the company reached a key level of support. Recently, ZM crossed above 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.
ZM could be on the verge of another rally after moving 12.6% higher over the last four weeks. Plus, the company is currently a Zacks Rank #1 (Strong Buy) stock.
The bullish case only gets stronger once investors take into account ZM's positive earnings estimate revisions. There have been 11 revisions higher for the current fiscal year compared to none lower, and the consensus estimate has moved up as well.
With a winning combination of earnings estimate revisions and hitting a key technical level, investors should keep their eye on ZM for more gains in the near future.
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Zoom Video Communications, Inc. (ZM) : Free Stock Analysis Report
