Should You Buy First Business Financial Services (FBIZ) After Golden Cross?
First Business Financial Services, Inc. (FBIZ) reached a significant support level, and could be a good pick for investors from a technical perspective. Recently, FBIZ'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.
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.
Over the past four weeks, FBIZ has gained 19.4%. The company currently sits at a #3 (Hold) on the Zacks Rank, also indicating that the stock could be poised for a breakout.
Once investors consider FBIZ'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 FBIZ for more gains in the near future given the company's key technical level and positive earnings estimate revisions.
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First Business Financial Services, Inc. (FBIZ) : Free Stock Analysis Report
