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HSBC (HSBC) Crossed Above the 50-Day Moving Average: What That Means for Investors
HSBC (HSBC - Free Report) is looking like an interesting pick from a technical perspective, as the company reached a key level of support. Recently, HSBC broke out above 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.
Shares of HSBC have been moving higher over the past four weeks, up 7.7%. Plus, the company is currently a Zacks Rank #2 (Buy) stock, suggesting that HSBC could be poised for a continued surge.
The bullish case solidifies once investors consider HSBC's positive earnings estimate revisions. No estimate has gone lower in the past two months for the current fiscal year, compared to 2 higher, while the consensus estimate has increased too.
With a winning combination of earnings estimate revisions and hitting a key technical level, investors should keep their eye on HSBC for more gains in the near future.