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SomaLogic, Inc. (SLGC) Just Flashed Golden Cross Signal: Do You Buy?

SomaLogic, Inc. (SLGC) is looking like an interesting pick from a technical perspective, as the company reached a key level of support. Recently, SLGC'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.

Golden crosses have three key stages that investors look out for. It starts with a downtrend in a stock's price that eventually bottoms out, followed by the stock's shorter moving average crossing over its longer moving average and triggering a trend reversal. The final stage is when a stock continues the upward climb to higher prices.

A golden cross contrasts with a death cross, another widely-followed chart pattern that suggests bearish momentum could be on the horizon.

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SLGC has rallied 14.3% over the past four weeks, and the company is a #3 (Hold) on the Zacks Rank at the moment. This combination indicates SLGC could be poised for a breakout.

Once investors consider SLGC'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 may want to watch SLGC for more gains in the near future given the company's key technical level and positive earnings estimate revisions.

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