Freeport-McMoRan (FCX) reached a significant support level, and could be a good pick for investors from a technical perspective. Recently, FCX broke through the 20-day moving average, which suggests a short-term bullish trend.
The 20-day simple moving average is a popular trading tool. It provides a look back at a stock’s price over a 20-day period, and is beneficial to short-term traders since it smooths out price fluctuations and provides 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.
FCX could be on the verge of another rally after moving 17.5% higher over the last four weeks. Plus, the company is currently a Zacks Rank #3 (Hold) stock.
The bullish case solidifies once investors consider FCX’s positive earnings estimate revisions. No estimate has gone lower in the past two months for the current fiscal year, compared to 7 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 FCX for more gains in the near future.
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