Patrick Industries (PATK) Just Overtook the 20-Day Moving Average
Good things could be on the horizon when a stock surpasses the 20-day simple moving average. How should investors react?
From a technical perspective, Patrick Industries (PATK) is looking like an interesting pick, as it just reached a key level of support. PATK 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.
Over the past four weeks, PATK has gained 6.3%. The company is currently ranked a Zacks Rank #1 (Strong Buy), another strong indication the stock could move even higher.
Once investors consider PATK's positive earnings estimate revisions, the bullish case only solidifies. No earnings estimate has been lowered in the past two months, compared to 2 raised estimates, for the current fiscal year, 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 PATK for more gains in the near future.
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Patrick Industries, Inc. (PATK): Free Stock Analysis Report
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