Yahoo Finance Should You Buy CareCloud, Inc. (CCLD) After Golden Cross?
After reaching an important support level, CareCloud, Inc. (CCLD) could be a good stock pick from a technical perspective. CCLD recently experienced a "golden cross" event, which saw its 50-day simple moving average breaking out above its 200-day simple moving average.
There's a reason traders love a golden cross -- it's a technical chart pattern that can indicate a bullish breakout is on the horizon. This kind of crossover is formed when a stock's short-term moving average breaks above a longer-term moving average. Typically, a golden cross involves the 50-day and the 200-day moving averages, since bigger time periods tend to form stronger breakouts.
A successful golden cross event has three stages. It first begins when a stock's price on the decline bottoms out. Then, its shorter moving average crosses above its longer moving average, triggering a positive trend reversal. The third and final phase occurs when the stock maintains its upward momentum.
A golden cross contrasts with a death cross, another widely-followed chart pattern that suggests bearish momentum could be on the horizon.
CCLD has rallied 147.4% over the past four weeks, and the company is a #3 (Hold) on the Zacks Rank at the moment. This combination indicates CCLD could be poised for a breakout.
Once investors consider CCLD's positive earnings outlook for the current quarter, the bullish case only solidifies. No earnings estimate has gone lower in the past two months compared to 2 revisions higher, and the Zacks Consensus Estimate has increased as well.
Investors should think about putting CCLD on their watchlist given the ultra-important technical indicator and positive move in earnings estimates.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
CareCloud, Inc. (CCLD) : Free Stock Analysis Report
