Cintas (CTAS) Just Overtook the 20-Day Moving Average
Is it a good or bad thing when a stock surpasses resistance at the 20-day simple moving average?
After reaching an important support level, Cintas (CTAS) could be a good stock pick from a technical perspective. CTAS surpassed resistance at the 20-day moving average, suggesting a short-term bullish trend.
The 20-day simple moving average is a well-liked trading tool because it provides a look back at a stock's price over a 20-day period. Additionally, short-term traders find this SMA very beneficial, as it smooths out short-term price trends and shows more trend reversal signals than longer-term moving averages.
Similar to other SMAs, if a stock's price moves above the 20-day, the trend is considered positive, while price falling below the moving average can signal a downward trend.
CTAS could be on the verge of another rally after moving 13.8% higher over the last four weeks. Plus, the company is currently a Zacks Rank #2 (Buy) stock.
Looking at CTAS's earnings estimate revisions, investors will be even more convinced of the bullish uptrend. There have been 10 revisions higher for the current fiscal year compared to none lower, 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 CTAS for more gains in the near future.
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Cintas Corporation (CTAS): Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).