Should You Buy America First Multifamily Investors (ATAX) After Golden Cross?
After reaching an important support level, America First Multifamily Investors, L.P. (ATAX) could be a good stock pick from a technical perspective. ATAX recently experienced a "golden cross" event, which saw its 50-day simple moving average breaking out above its 200-day simple moving average.
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.
ATAX has rallied 6.1% over the past four weeks, and the company is a #3 (Hold) on the Zacks Rank at the moment. This combination indicates ATAX could be poised for a breakout.
Once investors consider ATAX'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 ATAX for more gains in the near future.
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America First Multifamily Investors, L.P. (ATAX) : Free Stock Analysis Report
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