Aligos Therapeutics, Inc. (ALGS) Just Flashed Golden Cross Signal: Do You Buy?
After reaching an important support level, Aligos Therapeutics, Inc. (ALGS) could be a good stock pick from a technical perspective. ALGS recently experienced a "golden cross" event, which saw its 50-day simple moving average breaking out above its 200-day simple moving average.
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.
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.
ALGS could be on the verge of a breakout after moving 7.4% higher over the last four weeks. Plus, the company is currently a #3 (Hold) on the Zacks Rank.
Once investors consider ALGS'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 1 revisions higher, and the Zacks Consensus Estimate has increased as well.
With a winning combination of earnings estimate revisions and hitting a key technical level, investors should keep their eye on ALGS for more gains in the near future.
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Aligos Therapeutics, Inc. (ALGS) : Free Stock Analysis Report
