Elastic (ESTC) Just Overtook the 50-Day Moving Average

Elastic (ESTC) is looking like an interesting pick from a technical perspective, as the company reached a key level of support. Recently, ESTC broke out above the 50-day moving average, suggesting a short-term bullish trend.

One of the three major moving averages, the 50-day simple moving average is commonly used by traders and analysts to determine support or resistance levels for different types of securities. However, the 50-day is considered to be more important since it's the first marker of an up or down trend.

Shares of ESTC have been moving higher over the past four weeks, up 7.5%. Plus, the company is currently a Zacks Rank #2 (Buy) stock, suggesting that ESTC could be poised for a continued surge.

Looking at ESTC's earnings estimate revisions, investors will be even more convinced of the bullish uptrend. There have been 7 higher compared to none lower for the current fiscal year, and the consensus estimate has moved up as well.

Given this move in earnings estimate revisions and the positive technical factor, investors may want to keep their eye on ESTC for more gains in the near future.

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This article originally published on Zacks Investment Research (zacks.com).

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