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Synopsys (SNPS) Crossed Above the 50-Day Moving Average: What That Means for Investors
After reaching an important support level, Synopsys (SNPS - Free Report) could be a good stock pick from a technical perspective. SNPS 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.
SNPS could be on the verge of another rally after moving 11.3% higher over the last four weeks. Plus, the company is currently a Zacks Rank #2 (Buy) stock.
Once investors consider SNPS's positive earnings estimate revisions, the bullish case only solidifies. No estimate has gone lower in the past two months for the current fiscal year, compared to 3 higher, and the consensus estimate has increased as well.
Investors may want to watch SNPS for more gains in the near future given the company's key technical level and positive earnings estimate revisions.