Amtech Systems (ASYS) is looking like an interesting pick from a technical perspective, as the company reached a key level of support. Recently, ASYS crossed above the 20-day moving average, suggesting 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.
ASYS has rallied 7% over the past four weeks, and the company is a Zacks Rank #2 (Buy) at the moment. This combination suggests ASYS could be on the verge of another move higher.
The bullish case only gets stronger once investors take into account ASYS's positive earnings estimate revisions. There have been 1 revisions higher for the current fiscal year compared to none lower, and the consensus estimate has moved up as well.
Investors may want to watch ASYS for more gains in the near future given the company's key technical level and positive earnings estimate revisions.
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Amtech Systems, Inc. (ASYS): Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).