Compass Diversified Holdings (CODI) Crossed Above the 200-Day Moving Average: What That Means for Investors
From a technical perspective, Compass Diversified Holdings (CODI) is looking like an interesting pick, as it just reached a key level of support. CODI recently overtook the 200-day moving average, and this suggests a long-term bullish trend.
The 200-day simple moving average is widely-used by traders and analysts, and helps establish market trends for stocks, commodities, indexes, and other financial instruments over the long term. The indicator moves higher or lower together with longer-term price moves, serving as a support or resistance level.
CODI could be on the verge of another rally after moving 19.1% higher over the last four weeks. Plus, the company is currently a Zacks Rank #3 (Hold) stock.
The bullish case solidifies once investors consider CODI'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.
With a winning combination of earnings estimate revisions and hitting a key technical level, investors should keep their eye on CODI for more gains in the near future.
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