Yahoo Finance Everest Group (EG)'s Technical Outlook is Bright After Key Golden Cross
Everest Group, Ltd. (EG) is looking like an interesting pick from a technical perspective, as the company reached a key level of support. Recently, EG's 50-day simple moving average crossed above its 200-day simple moving average, 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.
EG has rallied 5.2% over the past four weeks, and the company is a #3 (Hold) on the Zacks Rank at the moment. This combination indicates EG could be poised for a breakout.
The bullish case solidifies once investors consider EG's positive earnings outlook. For the current quarter, no earnings estimate has been cut compared to 1 revisions higher in the past 60 days. The Zacks Consensus Estimate has increased too.
Investors may want to watch EG for more gains in the near future given the company's key technical level and positive earnings estimate revisions.
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Everest Group, Ltd. (EG) : Free Stock Analysis Report
