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StoneCo Ltd. (STNE) Recently Broke Out Above the 200-Day Moving Average
After reaching an important support level, StoneCo Ltd. (STNE - Free Report) could be a good stock pick from a technical perspective. STNE surpassed resistance at the 200-day moving average, suggesting a long-term bullish trend.
The 200-day simple moving average is a useful tool for traders and analysts, establishing market trends for stocks, commodities, indexes, and other financial instruments over the long term. The marker moves higher or lower along with longer-term price moves, and serves as a support or resistance level.
Shares of STNE have been moving higher over the past four weeks, up 12%. Plus, the company is currently a Zacks Rank #2 (Buy) stock, suggesting that STNE could be poised for a continued surge.
Looking at STNE's earnings estimate revisions, investors will be even more convinced of the bullish uptrend. There have been 3 higher compared to none lower for the current fiscal year, and the consensus estimate has moved up as well.
Investors should think about putting STNE on their watchlist given the ultra-important technical indicator and positive move in earnings estimate revisions.