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After Golden Cross, Kinsale Capital Group, Inc. (KNSL)'s Technical Outlook is Bright

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From a technical perspective, Kinsale Capital Group, Inc. (KNSL - Free Report) is looking like an interesting pick, as it just reached a key level of support. KNSL'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.

A golden cross is a technical chart pattern that can signify a potential bullish breakout. It's formed from a crossover involving a security's short-term moving average breaking above a longer-term moving average, with the most common moving averages being 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 KNSL have been moving higher over the past four weeks, up 23.7%. Plus, the company is currently a #1 (Strong Buy) on the Zacks Rank, suggesting that KNSL could be poised for a breakout.

The bullish case only gets stronger once investors take into account KNSL's positive earnings outlook for the current quarter. There have been 3 upwards revisions compared to none lower over the past 60 days, and the Zacks Consensus Estimate has moved up as well.

Moving Average Chart for KNSL

With a winning combination of earnings estimate revisions and hitting a key technical level, investors should keep their eye on KNSL for more gains in the near future.


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