Patterson-UTI (PTEN) Just Overtook the 50-Day Moving Average

From a technical perspective, Patterson-UTI (PTEN) is looking like an interesting pick, as it just reached a key level of support. PTEN recently overtook the 50-day moving average, and this suggests 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.

PTEN has rallied 9.4% over the past four weeks, and the company is a Zacks Rank #2 (Buy) at the moment. This combination suggests PTEN could be on the verge of another move higher.

Once investors consider PTEN's positive earnings estimate revisions, the bullish case only solidifies. No estimate has gone lower in the past two months for the current fiscal year, compared to 4 higher, and the consensus estimate has increased as well.

With a winning combination of earnings estimate revisions and hitting a key technical level, investors should keep their eye on PTEN for more gains in the near future.

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