After reaching an important support level, BHP (BHP) could be a good stock pick from a technical perspective. BHP surpassed resistance at the 50-day moving average, suggesting 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.
BHP has rallied 7.3% over the past four weeks, and the company is a Zacks Rank #1 (Strong Buy) at the moment. This combination suggests BHP could be on the verge of another move higher.
The bullish case only gets stronger once investors take into account BHP’s positive earnings estimate revisions. There have been 4 higher compared to none lower for the current fiscal year, and the consensus estimate has moved up as well.
Investors may want to watch BHP for more gains in the near future given the company’s key technical level and positive earnings estimate revisions.
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