Daqo New Energy (DQ) Recently Broke Out Above the 50-Day Moving Average

After reaching an important support level, Daqo New Energy (DQ) could be a good stock pick from a technical perspective. DQ surpassed resistance at the 50-day moving average, suggesting a short-term bullish trend.

The 50-day simple moving average is a widely used technical indicator that helps determine support or resistance levels for different types of securities. It's one of three major moving averages, but takes precedent because it's the first sign of an up or down trend.

DQ has rallied 11.1% over the past four weeks, and the company is a Zacks Rank #1 (Strong Buy) at the moment. This combination suggests DQ could be on the verge of another move higher.

The bullish case solidifies once investors consider DQ's positive earnings estimate revisions. No estimate has gone lower in the past two months for the current fiscal year, compared to 2 higher, while the consensus estimate has increased too.

Investors may want to watch DQ for more gains in the near future given the company's key technical level and positive earnings estimate revisions.

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