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Galectin Therapeutics Inc. (GALT)'s Technical Outlook is Bright After Key Golden Cross
Galectin Therapeutics Inc. (GALT) is looking like an interesting pick from a technical perspective, as the company reached a key level of support. Recently, GALT'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.
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.
This kind of chart pattern is the opposite of a death cross, which is a technical event that suggests future bearish price movement.
Shares of GALT have been moving higher over the past four weeks, up 15.4%. Plus, the company is currently a #2 (Buy) on the Zacks Rank, suggesting that GALT could be poised for a breakout.
Once investors consider GALT'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 GALT for more gains in the near future.
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Galectin Therapeutics Inc. (GALT) : Free Stock Analysis Report
