DigitalOcean Holdings, Inc. (DOCN) Recently Broke Out Above the 20-Day Moving Average

From a technical perspective, DigitalOcean Holdings, Inc. (DOCN) is looking like an interesting pick, as it just reached a key level of support. DOCN 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.Like other SMAs, if a stock's price is moving above the 20-day, the trend is considered positive. When the price falls below the moving average, it can signal a downward trend.DOCN has rallied 11.1% over the past four weeks, and the company is a Zacks Rank #3 (Hold) at the moment. This combination suggests DOCN could be on the verge of another move higher.The bullish case only gets stronger once investors take into account DOCN's positive earnings estimate revisions. There have been 7 revisions higher for the current fiscal year compared to none lower, and the consensus estimate has moved up as well.Investors should think about putting DOCN on their watchlist given the ultra-important technical indicator and positive move in earnings estimate revisions.Only $1 to See All Zacks' Buys and SellsWe're not kidding.Several years ago, we shocked our members by offering them 30-day access to all our picks for the total sum of only $1. No obligation to spend another cent.Thousands have taken advantage of this opportunity. Thousands did not - they thought there must be a catch. Yes, we do have a reason. We want you to get acquainted with our portfolio services like Surprise Trader, Stocks Under $10, Technology Innovators,and more, that closed 228 positions with double- and triple-digit gains in 2023 alone.See Stocks Now >>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 DigitalOcean Holdings, Inc. (DOCN): Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks