NVIDIA Corporation (NVDA) is looking like an interesting pick from a technical perspective, as the company reached a key level of support. Recently, NVDA’s 50-day simple moving average crossed above its 200-day simple moving average, known as a “golden cross.”
A golden cross is a technical chart pattern that can signify a potential bullish breakout. It’s formed from a crossover involving a security’s short-term moving average breaking above a longer-term moving average, with the most common moving averages being the 50-day and the 200-day, 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.
This kind of chart pattern is the opposite of a death cross, which is a technical event that suggests future bearish price movement.
Shares of NVDA have been moving higher over the past four weeks, up 8%. Plus, the company is currently a #1 (Strong Buy) on the Zacks Rank, suggesting that NVDA could be poised for a breakout.
Looking at NVDA’s earnings expectations, investors will be even more convinced of the bullish uptrend. For the current quarter, there have been 15 changes higher compared to none lower over the past 60 days, and the Zacks Consensus Estimate has moved up as well.
Investors should think about putting NVDAon their watchlist given the ultra-important technical indicator and positive move in earnings estimates.
5 Stocks Set to Double
Each was handpicked by a Zacks expert as the #1 favorite stock to gain +100% or more in the coming year. While not all picks can be winners, previous recommendations have soared +112%, +171%, +209% and +232%.
Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.
Today, See These 5 Potential Home Runs >>
NVIDIA Corporation (NVDA) : Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).
