Danaos (DAC) is looking like an interesting pick from a technical perspective, as the company reached a key level of support. Recently, DAC crossed above the 20-day moving average, suggesting a short-term bullish trend.
A well-liked tool among traders, the 20-day simple moving average offers a look back at a stock's price over a 20-day period. This is very beneficial to short-term traders, as it smooths out short-term price trends and gives 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.
DAC has rallied 6.1% over the past four weeks, and the company is a Zacks Rank #3 (Hold) at the moment. This combination suggests DAC could be on the verge of another move higher.
Looking at DAC's earnings estimate revisions, investors will be even more convinced of the bullish uptrend. There have been 1 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 DAC on their watchlist given the ultra-important technical indicator and positive move in earnings estimate revisions.
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Danaos Corporation (DAC) : Free Stock Analysis Report
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