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Aldeyra Therapeutics, Inc. (ALDX) Now Trades Above Golden Cross: Time to Buy?

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From a technical perspective, Aldeyra Therapeutics, Inc. (ALDX - Free Report) is looking like an interesting pick, as it just reached a key level of support. ALDX'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.

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.

A successful golden cross event has three stages. It first begins when a stock's price on the decline bottoms out. Then, its shorter moving average crosses above its longer moving average, triggering a positive trend reversal. The third and final phase occurs when the stock maintains its upward momentum.

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

ALDX could be on the verge of a breakout after moving 58.3% higher over the last four weeks. Plus, the company is currently a #3 (Hold) on the Zacks Rank.

Looking at ALDX'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.

Moving Average Chart for ALDX

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


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