After Golden Cross, RMR Group (RMR)'s Technical Outlook is Bright
The RMR Group Inc. (RMR) is looking like an interesting pick from a technical perspective, as the company reached a key level of support. Recently, RMR's 50-day simple moving average crossed above its 200-day simple moving average, 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.
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 RMR have been moving higher over the past four weeks, up 12.4%. Plus, the company is currently a #3 (Hold) on the Zacks Rank, suggesting that RMR could be poised for a breakout.
Once investors consider RMR'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.
Investors should think about putting RMR on their watchlist given the ultra-important technical indicator and positive move in earnings estimates.
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The RMR Group Inc. (RMR) : Free Stock Analysis Report
