Northrim BanCorp (NRIM)'s Technical Outlook is Bright After Key Golden Cross
From a technical perspective, Northrim BanCorp Inc (NRIM) is looking like an interesting pick, as it just reached a key level of support. NRIM'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.
A golden cross is the opposite of a death cross, another technical event that indicates bearish price movement may be on the horizon.
NRIM could be on the verge of a breakout after moving 17.8% higher over the last four weeks. Plus, the company is currently a #2 (Buy) on the Zacks Rank.
Looking at NRIM's earnings expectations, investors will be even more convinced of the bullish uptrend. For the current quarter, there have been 1 changes higher compared to none lower over the past 60 days, and the Zacks Consensus Estimate has moved up as well.
Investors may want to watch NRIM for more gains in the near future given the company's key technical level and positive earnings estimate revisions.
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Northrim BanCorp Inc (NRIM) : Free Stock Analysis Report
