After reaching an important support level, Axcelis Technologies (ACLS) could be a good stock pick from a technical perspective. ACLS surpassed resistance at the 20-day moving average, suggesting a short-term bullish trend.
The 20-day simple moving average is a popular trading tool. It provides a look back at a stock's price over a 20-day period, and is beneficial to short-term traders since it smooths out price fluctuations and provides 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.
Shares of ACLS have been moving higher over the past four weeks, up 7.5%. Plus, the company is currently a Zacks Rank #1 (Strong Buy) stock, suggesting that ACLS could be poised for a continued surge.
The bullish case solidifies once investors consider ACLS's positive earnings estimate revisions. No estimate has gone lower in the past two months for the current fiscal year, compared to 3 higher, while the consensus estimate has increased too.
Given this move in earnings estimate revisions and the positive technical factor, investors may want to keep their eye on ACLS for more gains in the near future.
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Axcelis Technologies, Inc. (ACLS): Free Stock Analysis Report
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