OneSpaWorld (OSW) Just Flashed Golden Cross Signal: Do You Buy?
OneSpaWorld Holdings Limited (OSW) is looking like an interesting pick from a technical perspective, as the company reached a key level of support. Recently, OSW'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.
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.
A golden cross contrasts with a death cross, another widely-followed chart pattern that suggests bearish momentum could be on the horizon.
OSW has rallied 23.5% over the past four weeks, and the company is a #3 (Hold) on the Zacks Rank at the moment. This combination indicates OSW could be poised for a breakout.
Once investors consider OSW'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 3 revisions higher, and the Zacks Consensus Estimate has increased as well.
Investors should think about putting OSW on their watchlist given the ultra-important technical indicator and positive move in earnings estimates.
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OneSpaWorld Holdings Limited (OSW) : Free Stock Analysis Report
