Luna Innovations Incorporated (LUNA) Now Trades Above Golden Cross: Time to Buy?
After reaching an important support level, Luna Innovations Incorporated (LUNA) could be a good stock pick from a technical perspective. LUNA recently experienced a "golden cross" event, which saw its 50-day simple moving average breaking out above its 200-day simple moving average.
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.
There are three stages to a golden cross. First, there must be a downtrend in a stock's price that eventually bottoms out. Then, the stock's shorter moving average crosses over its longer moving average, triggering a positive trend reversal. The third stage is when a stock continues the upward momentum 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.
LUNA could be on the verge of a breakout after moving 50% higher over the last four weeks. Plus, the company is currently a #2 (Buy) on the Zacks Rank.
Looking at LUNA's earnings expectations, investors will be even more convinced of the bullish uptrend. For the current quarter, there have been 0 changes higher compared to none lower over the past 60 days, and the Zacks Consensus Estimate has moved up as well.
Given this move in earnings estimates and the positive technical factor, investors may want to keep their eye on LUNA for more gains in the near future.
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Luna Innovations Incorporated (LUNA) : Free Stock Analysis Report
