Teladoc (TDOC) Recently Broke Out Above the 20-Day Moving Average

Teladoc (TDOC) is looking like an interesting pick from a technical perspective, as the company reached a key level of support. Recently, TDOC crossed above the 20-day moving average, suggesting 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.

The 20-day moving average can show signals that are similar to other SMAs as well. 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.

Shares of TDOC have been moving higher over the past four weeks, up 13.5%. Plus, the company is currently a Zacks Rank #1 (Strong Buy) stock, suggesting that TDOC could be poised for a continued surge.

Once investors consider TDOC'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.

Given this move in earnings estimate revisions and the positive technical factor, investors may want to keep their eye on TDOC 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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