PennantPark (PNNT) Just Flashed Golden Cross Signal: Do You Buy?

PennantPark (PNNT) is looking like an interesting pick from a technical perspective, as the company reached a key level of support. Recently, PNNT crossed above 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.

The 20-day moving average can show signals that are similar to other SMAs as well. 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.

PNNT has rallied 7.8% over the past four weeks, and the company is a Zacks Rank #2 (Buy) at the moment. This combination suggests PNNT could be on the verge of another move higher.

The bullish case only gets stronger once investors take into account PNNT's positive earnings estimate revisions. There have been 4 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 PNNT for more gains in the near future.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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