U.S. markets closed
  • S&P 500

    4,070.56
    +10.13 (+0.25%)
     
  • Dow 30

    33,978.08
    +28.67 (+0.08%)
     
  • Nasdaq

    11,621.71
    +109.30 (+0.95%)
     
  • Russell 2000

    1,911.46
    +8.39 (+0.44%)
     
  • Crude Oil

    79.38
    -1.63 (-2.01%)
     
  • Gold

    1,927.60
    -2.40 (-0.12%)
     
  • Silver

    23.73
    -0.30 (-1.23%)
     
  • EUR/USD

    1.0874
    -0.0018 (-0.16%)
     
  • 10-Yr Bond

    3.5180
    +0.0250 (+0.72%)
     
  • GBP/USD

    1.2395
    -0.0012 (-0.10%)
     
  • USD/JPY

    129.8000
    -0.3530 (-0.27%)
     
  • BTC-USD

    23,240.24
    +164.88 (+0.71%)
     
  • CMC Crypto 200

    526.66
    +9.65 (+1.87%)
     
  • FTSE 100

    7,765.15
    +4.04 (+0.05%)
     
  • Nikkei 225

    27,382.56
    +19.81 (+0.07%)
     

Hancock Whitney (HWC) Just Flashed Golden Cross Signal: Do You Buy?

From a technical perspective, Hancock Whitney Corporation (HWC) is looking like an interesting pick, as it just reached a key level of support. HWC's 50-day simple moving average crossed above its 200-day simple moving average, which is known as a "golden cross" in the trading world.

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.

This kind of chart pattern is the opposite of a death cross, which is a technical event that suggests future bearish price movement.

Over the past four weeks, HWC has gained 11.4%. The company currently sits at a #2 (Buy) on the Zacks Rank, also indicating that the stock could be poised for a breakout.

The bullish case only gets stronger once investors take into account HWC's positive earnings outlook for the current quarter. There have been 6 upwards revisions compared to none lower over the past 60 days, and the Zacks Consensus Estimate has moved up as well.

Moving Average Chart for HWC
Moving Average Chart for HWC

With a winning combination of earnings estimate revisions and hitting a key technical level, investors should keep their eye on HWC 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
 
Hancock Whitney Corporation (HWC) : Free Stock Analysis Report
 
To read this article on Zacks.com click here.
 
Zacks Investment Research