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Crocs (CROX) Recently Broke Out Above the 50-Day Moving Average
Crocs (CROX - Free Report) reached a significant support level, and could be a good pick for investors from a technical perspective. Recently, CROX broke through the 50-day moving average, which suggests a short-term bullish trend.
The 50-day simple moving average, which is one of three major moving averages, is widely used by traders and analysts to establish support and resistance levels for a range of securities. Because it's the first sign of an up or down trend, the 50-day is considered to be more important.
CROX has rallied 8.4% over the past four weeks, and the company is a Zacks Rank #2 (Buy) at the moment. This combination suggests CROX could be on the verge of another move higher.
The bullish case solidifies once investors consider CROX's positive earnings estimate revisions. No estimate has gone lower in the past two months for the current fiscal year, compared to 1 higher, while the consensus estimate has increased too.
Investors should think about putting CROX on their watchlist given the ultra-important technical indicator and positive move in earnings estimate revisions.