Amazon (AMZN) is looking like an interesting pick from a technical perspective, as the company reached a key level of support. Recently, AMZN broke out above the 50-day moving average, suggesting a short-term bullish trend.
One of the three major moving averages, the 50-day simple moving average is commonly used by traders and analysts to determine support or resistance levels for different types of securities. However, the 50-day is considered to be more important since it's the first marker of an up or down trend.
AMZN has rallied 7.4% over the past four weeks, and the company is a Zacks Rank #2 (Buy) at the moment. This combination suggests AMZN could be on the verge of another move higher.
The bullish case only gets stronger once investors take into account AMZN's positive earnings estimate revisions. There have been 1 higher compared to none lower for the current fiscal year, and the consensus estimate has moved up as well.
Given this move in earnings estimate revisions and the positive technical factor, investors may want to keep their eye on AMZN for more gains in the near future.
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Amazon.com, Inc. (AMZN): Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).