British American Tobacco PLC (NYSE:BTI) stock is turning heads on Wall Street with a classic bullish signal approaching: the Golden Cross.
This technical pattern, where the 50-day simple moving average (SMA) rockets past the 200-day SMA, often heralds a strong upward trend. But that's just the beginning of the company's bullish bonanza.
Technicals Indicate Strong Bullish Momentum
The Golden Cross is just one of several technical metrics supporting a bullish stance on British American Tobacco. The stock is currently trading at $32.13, well above its 5, 20, and 50-day exponential moving averages (EMAs). This positioning indicates a strong bullish trend, reinforced by slight buying pressure in the market.
- 50-day SMA vs. 200-day SMA: With the 50-day SMA now at $30.45, crossing above the 200-day SMA at $30.48, British American Tobacco is clearly on a bullish path.
- Current Share Price: BTI's share price of $32.13 surpasses several key moving averages, including the 8-day SMA ($31.37), 20-day SMA ($31.06), and 50-day SMA ($30.45). Each of these signals reinforcing short-to-medium term bullishness.
- MACD Indicator: The Moving Average Convergence Divergence (MACD) indicator stands at 0.33, further suggesting a bullish outlook.
- RSI and Bollinger Bands: While the Relative Strength Index (RSI) at 66.74 indicates the stock is nearing overbought territory, the Bollinger Bands suggest bullishness, with the stock trading in the upper, bullish band.
Also Read: 3 Tobacco Stocks Worth Watching Amid Industry Challenges
Fueling the Fire: BTI's Bold Buyback
Adding fuel to BTI's bullish fire, the company recently completed a hefty share buyback.
On June 26, British American Tobacco scooped up 200,000 ordinary shares from UBS AG, part of a buyback program announced on March 18. The shares bought back will be canceled, shrinking the total number of shares in circulation to 2,221,832,242.
This move is a clear sign of confidence from British American Tobacco's management, directly benefiting shareholders and tightening the supply of available shares.
With the Golden Cross initiating a bullish trail and a slew of technical indicators backing up the trend, British American Tobacco stock is grabbing its share of spotlight in the market.
The recent share buyback only adds to the bullish sentiment, signaling management's faith in the company's future prospects.
For investors, BTI is a stock worth watching closely as it rides this wave of bullish momentum.
Image: Courtesy of BTI