Dillard's (DDS) Just Overtook the 20-Day Moving Average
Is it a good or bad thing when a stock surpasses resistance at the 20-day simple moving average?
From a technical perspective, Dillard's (DDS) is looking like an interesting pick, as it just reached a key level of support. DDS 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.
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.
DDS has rallied 18.1% over the past four weeks, and the company is a Zacks Rank #1 (Strong Buy) at the moment. This combination suggests DDS could be on the verge of another move higher.
The bullish case solidifies once investors consider DDS's positive earnings estimate revisions. No estimate has gone lower in the past two months for the current fiscal year, compared to 1 higher, while the consensus estimate has increased too.
Investors may want to watch DDS for more gains in the near future given the company's key technical level and positive earnings estimate revisions.
More Stock News: This Is Bigger than the iPhone!
It could become the mother of all technological revolutions. Apple sold a mere 1 billion iPhones in 10 years but a new breakthrough is expected to generate more than 77 billion devices by 2025, creating a $1.3 trillion market.
Zacks has just released a Special Report that spotlights this fast-emerging phenomenon and 4 tickers for taking advantage of it. If you don't buy now, you may kick yourself in 2022.Click here for the 4 trades >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Dillards, Inc. (DDS): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research