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Axcelis Technologies (ACLS) Just Flashed Golden Cross Signal: Do You Buy?

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

ACLS has rallied 37.9% over the past four weeks, and the company is a #2 (Buy) on the Zacks Rank at the moment. This combination indicates ACLS could be poised for a breakout.

The bullish case solidifies once investors consider ACLS's positive earnings outlook. For the current quarter, no earnings estimate has been cut compared to 2 revisions higher in the past 60 days. The Zacks Consensus Estimate has increased too.

Moving Average Chart for ACLS

Given this move in earnings estimates and the positive technical factor, investors may want to keep their eye on ACLS for more gains in the near future.


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