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Ellington Credit (EARN) Recently Broke Out Above the 50-Day Moving Average
Ellington Credit (EARN - Free Report) reached a significant support level, and could be a good pick for investors from a technical perspective. Recently, EARN broke through the 50-day moving average, which suggests 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.
Over the past four weeks, EARN has gained 6.6%. The company is currently ranked a Zacks Rank #2 (Buy), another strong indication the stock could move even higher.
Looking at EARN's earnings estimate revisions, investors will be even more convinced of the bullish uptrend. There have been 1 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 EARN for more gains in the near future.