Back to top

Image: Bigstock

Ametek (AME)'s Technical Outlook is Bright After Key Golden Cross

Read MoreHide Full Article

After reaching an important support level, AMETEK, Inc. (AME - Free Report) could be a good stock pick from a technical perspective. AME 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.

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 contrasts with a death cross, another widely-followed chart pattern that suggests bearish momentum could be on the horizon.

AME could be on the verge of a breakout after moving 8.8% higher over the last four weeks. Plus, the company is currently a #3 (Hold) on the Zacks Rank.

Once investors consider AME'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 7 revisions higher, and the Zacks Consensus Estimate has increased as well.

Moving Average Chart for AME

Investors should think about putting AME on their watchlist given the ultra-important technical indicator and positive move in earnings estimates.


In-Depth Zacks Research for the Tickers Above


Normally $25 each - click below to receive one report FREE:


AMETEK, Inc. (AME) - free report >>

Published in