PENN Entertainment (PENN – Free Report) is looking like an interesting pick from a technical perspective, as the company reached a key level of support. Recently, PENN crossed above the 20-day moving average, suggesting 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.
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.
PENN could be on the verge of another rally after moving 8.5% higher over the last four weeks. Plus, the company is currently a Zacks Rank #3 (Hold) stock.
Looking at PENN’s earnings estimate revisions, investors will be even more convinced of the bullish uptrend. There have been 2 revisions higher for the current fiscal year compared to none lower, and the consensus estimate has moved up as well.
Investors should think about putting PENN on their watchlist given the ultra-important technical indicator and positive move in earnings estimate revisions.
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