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DigitalOcean Holdings, Inc. (DOCN) Just Overtook the 200-Day Moving Average
After reaching an important support level, DigitalOcean Holdings, Inc. (DOCN - Free Report) could be a good stock pick from a technical perspective. DOCN surpassed resistance at the 200-day moving average, suggesting a long-term bullish trend.
The 200-day simple moving average helps traders and analysts determine overall long-term market trends for stocks, commodities, indexes, and other financial instruments. The indicator moves higher or lower along with longer-term price moves, serving as a support or resistance level.
Shares of DOCN have been moving higher over the past four weeks, up 29.5%. Plus, the company is currently a Zacks Rank #3 (Hold) stock, suggesting that DOCN could be poised for a continued surge.
The bullish case solidifies once investors consider DOCN'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.
With a winning combination of earnings estimate revisions and hitting a key technical level, investors should keep their eye on DOCN for more gains in the near future.