Should You Buy Progyny (PGNY) After Golden Cross?
From a technical perspective, Progyny, Inc. (PGNY) is looking like an interesting pick, as it just reached a key level of support. PGNY's 50-day simple moving average crossed above its 200-day simple moving average, which is known as a "golden cross" in the trading world.
There's a reason traders love a golden cross -- it's a technical chart pattern that can indicate a bullish breakout is on the horizon. This kind of crossover is formed when a stock's short-term moving average breaks above a longer-term moving average. Typically, a golden cross involves the 50-day and the 200-day moving averages, 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 is the opposite of a death cross, another technical event that indicates bearish price movement may be on the horizon.
PGNY could be on the verge of a breakout after moving 10.1% higher over the last four weeks. Plus, the company is currently a #3 (Hold) on the Zacks Rank.
Looking at PGNY's earnings expectations, investors will be even more convinced of the bullish uptrend. For the current quarter, there have been 6 changes higher compared to none lower over the past 60 days, and the Zacks Consensus Estimate has moved up as well.
With a winning combination of earnings estimate revisions and hitting a key technical level, investors should keep their eye on PGNY for more gains in the near future.
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Progyny, Inc. (PGNY) : Free Stock Analysis Report
