Should You Buy Granite Ridge Resources, Inc. (GRNT) After Golden Cross?
Granite Ridge Resources, Inc. (GRNT) is looking like an interesting pick from a technical perspective, as the company reached a key level of support. Recently, GRNT's 50-day simple moving average crossed above its 200-day simple moving average, 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.
GRNT has rallied 6.3% over the past four weeks, and the company is a #2 (Buy) on the Zacks Rank at the moment. This combination indicates GRNT could be poised for a breakout.
Once investors consider GRNT'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 GRNT for more gains in the near future.
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Granite Ridge Resources, Inc. (GRNT) : Free Stock Analysis Report
