U.S. markets open in 2 hours 51 minutes
  • S&P Futures

    4,407.50
    +58.50 (+1.35%)
     
  • Dow Futures

    34,515.00
    +330.00 (+0.97%)
     
  • Nasdaq Futures

    14,423.50
    +282.75 (+2.00%)
     
  • Russell 2000 Futures

    2,032.00
    +30.70 (+1.53%)
     
  • Crude Oil

    86.01
    +0.41 (+0.48%)
     
  • Gold

    1,845.00
    -7.50 (-0.40%)
     
  • Silver

    23.91
    +0.01 (+0.06%)
     
  • EUR/USD

    1.1283
    -0.0023 (-0.20%)
     
  • 10-Yr Bond

    1.7830
    0.0000 (0.00%)
     
  • Vix

    28.47
    -1.43 (-4.78%)
     
  • GBP/USD

    1.3515
    +0.0009 (+0.06%)
     
  • USD/JPY

    114.1600
    +0.2940 (+0.26%)
     
  • BTC-USD

    37,956.46
    +1,592.42 (+4.38%)
     
  • CMC Crypto 200

    864.96
    +44.37 (+5.41%)
     
  • FTSE 100

    7,493.43
    +121.97 (+1.65%)
     
  • Nikkei 225

    27,011.33
    -120.01 (-0.44%)
     

Should You Buy Brooks Automation (BRKS) After Golden Cross?

·2 min read

Brooks Automation, Inc. (BRKS) reached a significant support level, and could be a good pick for investors from a technical perspective. Recently, BRKS's 50-day simple moving average broke out above its 200-day moving average; this is known as a "golden cross."

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.

A successful golden cross event has three stages. It first begins when a stock's price on the decline bottoms out. Then, its shorter moving average crosses above its longer moving average, triggering a positive trend reversal. The third and final phase occurs when the stock maintains its upward momentum.

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

Shares of BRKS have been moving higher over the past four weeks, up 32.8%. Plus, the company is currently a #2 (Buy) on the Zacks Rank, suggesting that BRKS could be poised for a breakout.

Looking at BRKS's earnings expectations, investors will be even more convinced of the bullish uptrend. For the current quarter, there have been 4 changes higher compared to none lower over the past 60 days, and the Zacks Consensus Estimate has moved up as well.

Moving Average Chart for BRKS
Moving Average Chart for BRKS

Given this move in earnings estimates and the positive technical factor, investors may want to keep their eye on BRKS for more gains in the near future.


Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

Brooks Automation, Inc. (BRKS) : Free Stock Analysis Report

To read this article on Zacks.com click here.

Zacks Investment Research