Robinhood Markets, Inc. (HOOD) reached a significant support level, and could be a good pick for investors from a technical perspective. Recently, HOOD broke through the 50-day moving average, which suggests a short-term bullish trend.

One of the three major moving averages, the 50-day simple moving average is commonly used by traders and analysts to determine support or resistance levels for different types of securities. However, the 50-day is considered to be more important since it's the first marker of an up or down trend.

HOOD could be on the verge of another rally after moving 13.9% higher over the last four weeks. Plus, the company is currently a Zacks Rank #3 (Hold) stock.

The bullish case only gets stronger once investors take into account HOOD's positive earnings estimate revisions. There have been 6 higher compared to none lower for the current fiscal year, and the consensus estimate has moved up as well.

Given this move in earnings estimate revisions and the positive technical factor, investors may want to keep their eye on HOOD for more gains in the near future.

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Robinhood Markets, Inc. (HOOD): Free Stock Analysis Report

This article originally published on Zacks Investment Research (zacks.com).

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