BJ's Wholesale Club (BJ) Recently Broke Out Above the 20-Day Moving Average

From a technical perspective, BJ's Wholesale Club (BJ) is looking like an interesting pick, as it just reached a key level of support. BJ recently overtook the 20-day moving average, and this suggests a short-term bullish trend.

The 20-day simple moving average is a popular investing tool. Traders like this SMA because it offers a look back at a stock's price over a shorter period and helps smooth out price fluctuations. The 20-day can also show 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.

BJ has rallied 6.9% over the past four weeks, and the company is a Zacks Rank #2 (Buy) at the moment. This combination suggests BJ could be on the verge of another move higher.

Looking at BJ's earnings estimate revisions, investors will be even more convinced of the bullish uptrend. There have been 1 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 BJ for more gains in the near future given the company's key technical level and positive earnings estimate revisions.

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

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