Benzinga - by Zacks, Benzinga Contributor.
After reaching an important support level, Redfin (NASDAQ: RDFN) could be a good stock pick from a technical perspective. RDFN surpassed resistance at 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.
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.
Shares of RDFN have been moving higher over the past four weeks, up 11.8%. Plus, the company is currently a Zacks Rank #3 (Hold) stock, suggesting that RDFN could be poised for a continued surge.
Once investors consider RDFN's positive earnings estimate revisions, the bullish case only solidifies. No earnings estimate has been lowered in the past two months, compared to 9 raised estimates, for the current fiscal year, and the consensus estimate has increased as well.
Investors may want to watch RDFN for more gains in the near future given the company's key technical level and positive earnings estimate revisions.
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