Investar (ISTR) Just Flashed Golden Cross Signal: Do You Buy?
From a technical perspective, Investar Holding Corporation (ISTR) is looking like an interesting pick, as it just reached a key level of support. ISTR'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.
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.
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.
Shares of ISTR have been moving higher over the past four weeks, up 7.2%. Plus, the company is currently a #1 (Strong Buy) on the Zacks Rank, suggesting that ISTR could be poised for a breakout.
The bullish case solidifies once investors consider ISTR's positive earnings outlook. For the current quarter, no earnings estimate has been cut compared to 3 revisions higher in the past 60 days. The Zacks Consensus Estimate has increased too.
With a winning combination of earnings estimate revisions and hitting a key technical level, investors should keep their eye on ISTR for more gains in the near future.
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