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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?

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This story originally appeared on Zacks

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.

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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.

Moving Average Chart for DDS

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.



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