Should You Buy Aspen Aerogels (ASPN) After Golden Cross?
Aspen Aerogels, Inc. (ASPN) is looking like an interesting pick from a technical perspective, as the company reached a key level of support. Recently, ASPN'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 is the opposite of a death cross, another technical event that indicates bearish price movement may be on the horizon.
ASPN could be on the verge of a breakout after moving 24.1% higher over the last four weeks. Plus, the company is currently a #2 (Buy) on the Zacks Rank.
Once investors consider ASPN'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 5 revisions higher, and the Zacks Consensus Estimate has increased as well.
Investors should think about putting ASPN on their watchlist given the ultra-important technical indicator and positive move in earnings estimates.
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Aspen Aerogels, Inc. (ASPN) : Free Stock Analysis Report
