Anavex Life Sciences (AVXL) is looking like an interesting pick from a technical perspective, as the company reached a key level of support. Recently, AVXL broke out above the 50-day moving average, suggesting a short-term bullish trend.
The 50-day simple moving average is one of three major moving averages used by traders and analysts to determine support or resistance levels for a wide range of securities. But the 50-day is considered to be more important because it’s the first marker of an up or down trend.
AVXL could be on the verge of another rally after moving 13% higher over the last four weeks. Plus, the company is currently a Zacks Rank #3 (Hold) stock.
The bullish case only gets stronger once investors take into account AVXL’s positive earnings estimate revisions. There have been 2 higher compared to none lower for the current fiscal year, and the consensus estimate has moved up as well.
With a winning combination of earnings estimate revisions and hitting a key technical level, investors should keep their eye on AVXL for more gains in the near future.
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