Skyline (SKY) Just Reclaimed the 20-Day Moving Average

·1 min read

From a technical perspective, Skyline (SKY) is looking like an interesting pick, as it just reached a key level of support. SKY recently overtook the 20-day moving average, and this suggests a short-term bullish trend.

The 20-day simple moving average is a popular trading tool. It provides a look back at a stock's price over a 20-day period, and is beneficial to short-term traders since it smooths out price fluctuations and provides more trend reversal signals than longer-term moving averages.

The 20-day moving average can show signals that are similar to other SMAs as well. 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.

SKY has rallied 13.4% over the past four weeks, and the company is a Zacks Rank #1 (Strong Buy) at the moment. This combination suggests SKY could be on the verge of another move higher.

Looking at SKY's earnings estimate revisions, investors will be even more convinced of the bullish uptrend. There have been 2 revisions higher for the current fiscal year compared to none lower, and the consensus estimate has moved up as well.

Investors should think about putting SKY on their watchlist given the ultra-important technical indicator and positive move in earnings estimate revisions.


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