Energous (WATT)'s Technical Outlook is Bright After Key Golden Cross
Energous Corporation (WATT) reached a significant support level, and could be a good pick for investors from a technical perspective. Recently, WATT's 50-day simple moving average broke out above its 200-day moving average; this is 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.
Shares of WATT have been moving higher over the past four weeks, up 16.1%. Plus, the company is currently a #2 (Buy) on the Zacks Rank, suggesting that WATT could be poised for a breakout.
The bullish case solidifies once investors consider WATT's positive earnings outlook. For the current quarter, no earnings estimate has been cut compared to 1 revisions higher in the past 60 days. The Zacks Consensus Estimate has increased too.
Investors should think about putting WATT on their watchlist given the ultra-important technical indicator and positive move in earnings estimates.
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