Fair Isaac (FICO) Just Flashed Golden Cross Signal: Do You Buy?
Fair Isaac Corporation (FICO) is looking like an interesting pick from a technical perspective, as the company reached a key level of support. Recently, FICO'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.
FICO has rallied 15.9% over the past four weeks, and the company is a #2 (Buy) on the Zacks Rank at the moment. This combination indicates FICO could be poised for a breakout.
Looking at FICO's earnings expectations, investors will be even more convinced of the bullish uptrend. For the current quarter, there have been 1 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 FICO for more gains in the near future.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Fair Isaac Corporation (FICO) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
