Wynn Resorts (WYNN) Just Flashed Golden Cross Signal: Do You Buy?
Wynn Resorts, Limited (WYNN) reached a significant support level, and could be a good pick for investors from a technical perspective. Recently, WYNN's 50-day simple moving average broke out above its 200-day moving average; this is 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 is the opposite of a death cross, another technical event that indicates bearish price movement may be on the horizon.
WYNN has rallied 6.4% over the past four weeks, and the company is a #2 (Buy) on the Zacks Rank at the moment. This combination indicates WYNN could be poised for a breakout.
The bullish case solidifies once investors consider WYNN's positive earnings outlook. For the current quarter, no earnings estimate has been cut compared to 5 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 WYNN for more gains in the near future.
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Wynn Resorts, Limited (WYNN) : Free Stock Analysis Report
