Unity Software Inc. (U) reached a significant support level, and could be a good pick for investors from a technical perspective. Recently, U 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.
Shares of U have been moving higher over the past four weeks, up 18.9%. Plus, the company is currently a Zacks Rank #2 (Buy) stock, suggesting that U could be poised for a continued surge.
The bullish case only gets stronger once investors take into account U's positive earnings estimate revisions. There have been 7 higher compared to none lower for the current fiscal year, and the consensus estimate has moved up as well.
Investors should think about putting U on their watchlist given the ultra-important technical indicator and positive move in earnings estimate revisions.
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