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 50-day moving average, which suggests a short-term bullish trend.
The 50-day simple moving average is a widely used technical indicator that helps determine support or resistance levels for different types of securities. It's one of three major moving averages, but takes precedent because it's the first sign of an up or down trend.
Shares of TCMD have been moving higher over the past four weeks, up 8.3%. Plus, the company is currently a Zacks Rank #2 (Buy) stock, suggesting that TCMD could be poised for a continued surge.
The bullish case solidifies once investors consider TCMD's positive earnings estimate revisions. No estimate has gone lower in the past two months for the current fiscal year, compared to 1 higher, while the consensus estimate has increased too.
Given this move in earnings estimate revisions and the positive technical factor, investors may want to keep their eye on TCMD for more gains in the near future.
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This article originally published on Zacks Investment Research (zacks.com).
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
