Ring Energy (REI) Recently Broke Out Above the 50-Day Moving Average

·1-min read

From a technical perspective, Ring Energy (REI) is looking like an interesting pick, as it just reached a key level of support. REI recently overtook the 50-day moving average, and this suggests a short-term bullish trend.

The 50-day simple moving average, which is one of three major moving averages, is widely used by traders and analysts to establish support and resistance levels for a range of securities. Because it's the first sign of an up or down trend, the 50-day is considered to be more important.

Over the past four weeks, REI has gained 8.7%. The company is currently ranked a Zacks Rank #2 (Buy), another strong indication the stock could move even higher.

The bullish case only gets stronger once investors take into account REI's positive earnings estimate revisions. There have been 1 higher compared to none lower for the current fiscal year, and the consensus estimate has moved up as well.

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


Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
 
Ring Energy, Inc. (REI) : Free Stock Analysis Report
 
To read this article on Zacks.com click here.
 
Zacks Investment Research