Zscaler (ZS) is looking like an interesting pick from a technical perspective, as the company reached a key level of support. Recently, ZS broke out above the 50-day moving average, suggesting 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.
Shares of ZS have been moving higher over the past four weeks, up 16.7%. Plus, the company is currently a Zacks Rank #3 (Hold) stock, suggesting that ZS could be poised for a continued surge.
Looking at ZS's earnings estimate revisions, investors will be even more convinced of the bullish uptrend. There have been 14 higher compared to none lower for the current fiscal year, and the consensus estimate has moved up as well.
Investors should think about putting ZS on their watchlist given the ultra-important technical indicator and positive move in earnings estimate revisions.
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Zscaler, Inc. (ZS): Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).