EuroDry (EDRY)'s Technical Outlook is Bright After Key Golden Cross
EuroDry (EDRY) is looking like an interesting pick from a technical perspective, as the company reached a key level of support. Recently, EDRY'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.
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 EDRY have been moving higher over the past four weeks, up 18.1%. Plus, the company is currently a #1 (Strong Buy) on the Zacks Rank, suggesting that EDRY could be poised for a breakout.
The bullish case solidifies once investors consider EDRY'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 may want to watch EDRY for more gains in the near future given the company's key technical level and positive earnings estimate revisions.
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EuroDry (EDRY) : Free Stock Analysis Report
