Market Overview

3 Golden Crosses In A Market Bloodbath

3 Golden Crosses In A Market Bloodbath

One of the most common bullish technical analysis indicators is the golden cross, a signal that occurs when a short-term moving average crosses above a longer-term moving average on a stock's chart. The golden cross indicates building bullish momentum and can be an indication of the beginning of a long-term bullish trend.

The standard moving averages to watch are the 50-day simple moving average (SMA) and the 200-day SMA. With plenty of stocks at or near 52-week lows, here are three golden cross stocks that may be flying under the radar for now.

Dollar Tree, Inc. (NASDAQ: DLTR)

Dollar Tree’s chart looks the most promising of the three companies mentioned. The stock recently bounced off of the level at which its two moving averages are converging, and the 50-day SMA is crossing the 200-day SMA with a lot of upward momentum.

Keurig Green Mountain Inc (NASDAQ: GMCR)

On the flip side, Keurig’s golden cross is simply a delayed result of the huge spike in share price following the company’s buyout news in December and is likely not a bullish signal for the stock.

Related Link: 3 Bullish MACD Crossovers In A Brutal Market

Edison International (NYSE: EIX)

You may need a microscope to see it, but Edison’s 50-day SMA has in fact crossed above its 200-day SMA once again. This move is one of the least convincing golden crosses in history, but it’s worth noting that Edison has held up relatively well in a horrible 2016 market.

Disclosure: the author holds no position in the stocks mentioned.


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