Comfort Systems (FIX) Just Overtook the 20-Day Moving Average

Comfort Systems (FIX) reached a significant support level, and could be a good pick for investors from a technical perspective. Recently, FIX broke through the 20-day moving average, which suggests a short-term bullish trend.

The 20-day simple moving average is a popular trading tool. It provides a look back at a stock's price over a 20-day period, and is beneficial to short-term traders since it smooths out price fluctuations and provides 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.

FIX could be on the verge of another rally after moving 23.3% higher over the last four weeks. Plus, the company is currently a Zacks Rank #1 (Strong Buy) stock.

Once investors consider FIX's positive earnings estimate revisions, the bullish case only solidifies. No earnings estimate has been lowered in the past two months, compared to 1 raised estimates, for the current fiscal year, 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 FIX for more gains in the near future.

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This article originally published on Zacks Investment Research (zacks.com).

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