From a technical perspective, Arcutis Biotherapeutics, Inc. (ARQT) is looking like an interesting pick, as it just reached a key level of support. ARQT recently overtook the 50-day moving average, and this suggests a short-term bullish trend.

The 50-day simple moving average is one of three major moving averages used by traders and analysts to determine support or resistance levels for a wide range of securities. But the 50-day is considered to be more important because it's the first marker of an up or down trend.

Shares of ARQT have been moving higher over the past four weeks, up 12.1%. Plus, the company is currently a Zacks Rank #2 (Buy) stock, suggesting that ARQT could be poised for a continued surge.

Once investors consider ARQT's positive earnings estimate revisions, the bullish case only solidifies. No estimate has gone lower in the past two months for the current fiscal year, compared to 3 higher, and the consensus estimate has increased as well.

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

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Arcutis Biotherapeutics, Inc. (ARQT) : Free Stock Analysis Report

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

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