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NetApp (NTAP) Just Overtook the 20-Day Moving Average
From a technical perspective, NetApp (NTAP - Free Report) is looking like an interesting pick, as it just reached a key level of support. NTAP recently overtook the 20-day moving average, and this suggests a short-term bullish trend.
The 20-day simple moving average is a popular investing tool. Traders like this SMA because it offers a look back at a stock's price over a shorter period and helps smooth out price fluctuations. The 20-day can also show more trend reversal signals than longer-term moving averages.
Like other SMAs, if a stock's price is moving above the 20-day, the trend is considered positive. When the price falls below the moving average, it can signal a downward trend.
NTAP could be on the verge of another rally after moving 5.7% higher over the last four weeks. Plus, the company is currently a Zacks Rank #3 (Hold) stock.
The bullish case solidifies once investors consider NTAP's positive earnings estimate revisions. No estimate has gone lower in the past two months for the current fiscal year, compared to 8 higher, while the consensus estimate has increased too.
Investors should think about putting NTAP on their watchlist given the ultra-important technical indicator and positive move in earnings estimate revisions.