Yahoo Finance Exponent (EXPO) Just Flashed Golden Cross Signal: Do You Buy?
Exponent, Inc. (EXPO) reached a significant support level, and could be a good pick for investors from a technical perspective. Recently, EXPO's 50-day simple moving average broke out above its 200-day moving average; this is known as a "golden cross."
Considered an important signifier for a bullish breakout, a golden cross is a technical chart pattern that's formed when a stock's short-term moving average breaks above a longer-term moving average; the most common crossover involves the 50-day and the 200-day, since bigger time periods tend to form stronger breakouts.
There are three stages to a golden cross. First, there must be a downtrend in a stock's price that eventually bottoms out. Then, the stock's shorter moving average crosses over its longer moving average, triggering a positive trend reversal. The third stage is when a stock continues the upward momentum to higher prices.
This kind of chart pattern is the opposite of a death cross, which is a technical event that suggests future bearish price movement.
EXPO could be on the verge of a breakout after moving 20.2% higher over the last four weeks. Plus, the company is currently a #1 (Strong Buy) on the Zacks Rank.
The bullish case only gets stronger once investors take into account EXPO's positive earnings outlook for the current quarter. There have been 2 upwards revisions compared to none lower over the past 60 days, and the Zacks Consensus Estimate has moved up as well.
With a winning combination of earnings estimate revisions and hitting a key technical level, investors should keep their eye on EXPO for more gains in the near future.
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Exponent, Inc. (EXPO) : Free Stock Analysis Report
