After Golden Cross, Accuray (ARAY)'s Technical Outlook is Bright
After reaching an important support level, Accuray Incorporated (ARAY) could be a good stock pick from a technical perspective. ARAY recently experienced a "golden cross" event, which saw its 50-day simple moving average breaking out above its 200-day simple moving average.
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.
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.
ARAY could be on the verge of a breakout after moving 19.4% higher over the last four weeks. Plus, the company is currently a #2 (Buy) on the Zacks Rank.
Once investors consider ARAY'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 2 revisions higher, and the Zacks Consensus Estimate has increased as well.
Investors should think about putting ARAY on their watchlist given the ultra-important technical indicator and positive move in earnings estimates.
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
Accuray Incorporated (ARAY) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
