Alpha and Omega Semiconductor (AOSL) Just Overtook the 50-Day Moving Average
Is it a good or bad thing when a stock surpasses resistance at the 50-day simple moving average?
From a technical perspective, Alpha and Omega Semiconductor (AOSL) is looking like an interesting pick, as it just reached a key level of support. AOSL recently overtook the 50-day moving average, and this suggests a short-term bullish trend.
The 50-day simple moving average, which is one of three major moving averages, is widely used by traders and analysts to establish support and resistance levels for a range of securities. Because it's the first sign of an up or down trend, the 50-day is considered to be more important.
AOSL could be on the verge of another rally after moving 6.6% higher over the last four weeks. Plus, the company is currently a Zacks Rank #1 (Strong Buy) stock.
The bullish case solidifies once investors consider AOSL's positive earnings estimate revisions. No estimate has gone lower in the past two months for the current fiscal year, compared to 2 higher, while the consensus estimate has increased too.
With a winning combination of earnings estimate revisions and hitting a key technical level, investors should keep their eye on AOSL for more gains in the near future.
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Alpha and Omega Semiconductor Limited (AOSL): Free Stock Analysis Report
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