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Shake Shack (SHAK) Crossed Above the 200-Day Moving Average: What That Means for Investors
After reaching an important support level, Shake Shack (SHAK - Free Report) could be a good stock pick from a technical perspective. SHAK 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.
SHAK could be on the verge of another rally after moving 20.4% higher over the last four weeks. Plus, the company is currently a Zacks Rank #2 (Buy) stock.
Looking at SHAK's earnings estimate revisions, investors will be even more convinced of the bullish uptrend. There have been 12 higher compared to none lower for the current fiscal year, and the consensus estimate has moved up as well.
With a winning combination of earnings estimate revisions and hitting a key technical level, investors should keep their eye on SHAK for more gains in the near future.