Idexx Laboratories (IDXX) Recently Broke Out Above the 20-Day Moving Average

From a technical perspective, Idexx Laboratories (IDXX) is looking like an interesting pick, as it just reached a key level of support. IDXX 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.

IDXX could be on the verge of another rally after moving 21.1% higher over the last four weeks. Plus, the company is currently a Zacks Rank #2 (Buy) stock.

The bullish case solidifies once investors consider IDXX's positive earnings estimate revisions. No estimate has gone lower in the past two months for the current fiscal year, compared to 7 higher, while the consensus estimate has increased too.

Investors should think about putting IDXX on their watchlist given the ultra-important technical indicator and positive move in earnings estimate revisions.

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

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