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Acuity Brands (AYI) Just Overtook the 50-Day Moving Average
Acuity Brands (AYI - Free Report) reached a significant support level, and could be a good pick for investors from a technical perspective. Recently, AYI broke through the 50-day moving average, which suggests 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.
AYI has rallied 10.1% over the past four weeks, and the company is a Zacks Rank #1 (Strong Buy) at the moment. This combination suggests AYI could be on the verge of another move higher.
The bullish case solidifies once investors consider AYI's positive earnings estimate revisions. No estimate has gone lower in the past two months for the current fiscal year, compared to 4 higher, while the consensus estimate has increased too.
Given this move in earnings estimate revisions and the positive technical factor, investors may want to keep their eye on AYI for more gains in the near future.