After reaching an important support level, Westinghouse Air Brake Technologies (WAB) could be a good stock pick from a technical perspective. WAB 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.
Similar to other SMAs, if a stock's price moves above the 20-day, the trend is considered positive, while price falling below the moving average can signal a downward trend.
WAB has rallied 6.4% over the past four weeks, and the company is a Zacks Rank #2 (Buy) at the moment. This combination suggests WAB could be on the verge of another move higher.
Looking at WAB's earnings estimate revisions, investors will be even more convinced of the bullish uptrend. 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 should think about putting WAB on their watchlist given the ultra-important technical indicator and positive move in earnings estimate revisions.
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Wabtec (WAB): Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).