Tactile Systems Technology (TCMD) Recently Broke Out Above the 20-Day Moving Average

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

The 20-day simple moving average is a popular investing tool. Traders like this SMA because it offers a look back at a stock's price over a shorter period and helps smooth out price fluctuations. The 20-day can also show 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.

TCMD has rallied 8.3% over the past four weeks, and the company is a Zacks Rank #2 (Buy) at the moment. This combination suggests TCMD could be on the verge of another move higher.

Looking at TCMD's earnings estimate revisions, investors will be even more convinced of the bullish uptrend. There have been 1 revisions higher for the current fiscal year compared to none lower, and the consensus estimate has moved up as well.

Investors may want to watch TCMD for more gains in the near future given the company's key technical level and positive earnings estimate revisions.

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

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