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Vertex Pharmaceuticals (VRTX) Recently Broke Out Above the 20-Day Moving Average

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Vertex Pharmaceuticals (VRTX - Free Report) is looking like an interesting pick from a technical perspective, as the company reached a key level of support. Recently, VRTX 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.

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.

Moving Average Chart for VRTX

Over the past four weeks, VRTX has gained 8.4%. The company is currently ranked a Zacks Rank #3 (Hold), another strong indication the stock could move even higher.

Looking at VRTX's earnings estimate revisions, investors will be even more convinced of the bullish uptrend. There have been 12 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 VRTX for more gains in the near future given the company's key technical level and positive earnings estimate revisions.


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