Zscaler (ZS) Just Overtook the 20-Day Moving Average
From a technical perspective, Zscaler (ZS) is looking like an interesting pick, as it just reached a key level of support. ZS recently overtook the 20-day moving average, and this suggests 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.
Similar to other SMAs, if a stock's price moves above the 20-day, the trend is considered positive, while price falling below the moving average can signal a downward trend.
ZS has rallied 7.4% over the past four weeks, and the company is a Zacks Rank #2 (Buy) at the moment. This combination suggests ZS could be on the verge of another move higher.
Once investors consider ZS's positive earnings estimate revisions, the bullish case only solidifies. No earnings estimate has been lowered in the past two months, compared to 13 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 ZS for more gains in the near future.
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Zscaler, Inc. (ZS) : Free Stock Analysis Report
