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Allegro MicroSystems, Inc. (ALGM) Just Overtook the 20-Day Moving Average

From a technical perspective, Allegro MicroSystems, Inc. (ALGM) is looking like an interesting pick, as it just reached a key level of support. ALGM recently overtook the 20-day moving average, and this suggests 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.

Shares of ALGM have been moving higher over the past four weeks, up 11.1%. Plus, the company is currently a Zacks Rank #1 (Strong Buy) stock, suggesting that ALGM could be poised for a continued surge.

Looking at ALGM's earnings estimate revisions, investors will be even more convinced of the bullish uptrend. There have been 2 revisions higher for the current fiscal year compared to none lower, and the consensus estimate has moved up as well.

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

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