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Ocuphire Pharma, Inc. (OCUP) Just Flashed Golden Cross Signal: Do You Buy?

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From a technical perspective, Ocuphire Pharma, Inc. (OCUP - Free Report) is looking like an interesting pick, as it just reached a key level of support. OCUP'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 contrasts with a death cross, another widely-followed chart pattern that suggests bearish momentum could be on the horizon.

Shares of OCUP have been moving higher over the past four weeks, up 48.9%. Plus, the company is currently a #3 (Hold) on the Zacks Rank, suggesting that OCUP could be poised for a breakout.

The bullish case solidifies once investors consider OCUP'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 OCUP

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


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