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Nova Ltd. (NVMI) Crossed Above the 50-Day Moving Average: What That Means for Investors
After reaching an important support level, Nova Ltd. (NVMI - Free Report) could be a good stock pick from a technical perspective. NVMI surpassed resistance at the 50-day moving average, suggesting a short-term bullish trend.
The 50-day simple moving average is a widely used technical indicator that helps determine support or resistance levels for different types of securities. It's one of three major moving averages, but takes precedent because it's the first sign of an up or down trend.
NVMI has rallied 5.4% over the past four weeks, and the company is a Zacks Rank #3 (Hold) at the moment. This combination suggests NVMI could be on the verge of another move higher.
Once investors consider NVMI'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 1 higher, and the consensus estimate has increased as well.
Investors should think about putting NVMI on their watchlist given the ultra-important technical indicator and positive move in earnings estimate revisions.