Yahoo News Encore Wire (WIRE) Crossed Above the 50-Day Moving Average: What That Means for Investors
Encore Wire (WIRE) is looking like an interesting pick from a technical perspective, as the company reached a key level of support. Recently, WIRE 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 WIRE have been moving higher over the past four weeks, up 11.1%. Plus, the company is currently a Zacks Rank #1 (Strong Buy) stock, suggesting that WIRE could be poised for a continued surge.
Looking at WIRE's earnings estimate revisions, investors will be even more convinced of the bullish uptrend. 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 WIRE for more gains in the near future.
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Encore Wire Corporation (WIRE) : Free Stock Analysis Report
