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Arcos Dorados (ARCO) Crossed Above the 50-Day Moving Average: What That Means for Investors
After reaching an important support level, Arcos Dorados (ARCO - Free Report) could be a good stock pick from a technical perspective. ARCO surpassed resistance at 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.
ARCO could be on the verge of another rally after moving 6.5% higher over the last four weeks. Plus, the company is currently a Zacks Rank #2 (Buy) stock.
The bullish case only gets stronger once investors take into account ARCO's positive earnings estimate revisions. There have been 2 higher compared to none lower for the current fiscal year, and the consensus estimate has moved up as well.
Investors may want to watch ARCO for more gains in the near future given the company's key technical level and positive earnings estimate revisions.