After reaching an important support level, Cracker Barrel Old Country Store (CBRL) could be a good stock pick from a technical perspective. CBRL surpassed resistance at the 20-day moving average, suggesting a short-term bullish trend.
The 20-day simple moving average is a well-liked trading tool because it provides a look back at a stock's price over a 20-day period. Additionally, short-term traders find this SMA very beneficial, as it smooths out short-term price trends and shows 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.
CBRL has rallied 5.5% over the past four weeks, and the company is a Zacks Rank #3 (Hold) at the moment. This combination suggests CBRL could be on the verge of another move higher.
The bullish case only gets stronger once investors take into account CBRL's positive earnings estimate revisions. There have been 4 revisions higher for the current fiscal year compared to none lower, and the consensus estimate has moved up as well.
Investors should think about putting CBRL on their watchlist given the ultra-important technical indicator and positive move in earnings estimate revisions.
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Cracker Barrel Old Country Store, Inc. (CBRL): Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).