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Hercules Technology (HTGC) Just Flashed Golden Cross Signal: Do You Buy?
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Hercules Capital, Inc. (HTGC - Free Report) reached a significant support level, and could be a good pick for investors from a technical perspective. Recently, HTGC's 50-day simple moving average broke out above its 200-day moving average; this is known as a "golden cross."
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.
There are three stages to a golden cross. First, there must be a downtrend in a stock's price that eventually bottoms out. Then, the stock's shorter moving average crosses over its longer moving average, triggering a positive trend reversal. The third stage is when a stock continues the upward momentum 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.
HTGC has rallied 13.9% over the past four weeks, and the company is a #2 (Buy) on the Zacks Rank at the moment. This combination indicates HTGC could be poised for a breakout.
The bullish case only gets stronger once investors take into account HTGC's positive earnings outlook for the current quarter. There have been 2 upwards revisions compared to none lower over the past 60 days, and the Zacks Consensus Estimate has moved up as well.
With a winning combination of earnings estimate revisions and hitting a key technical level, investors should keep their eye on HTGC for more gains in the near future.
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Hercules Technology (HTGC) Just Flashed Golden Cross Signal: Do You Buy?
Hercules Capital, Inc. (HTGC - Free Report) reached a significant support level, and could be a good pick for investors from a technical perspective. Recently, HTGC's 50-day simple moving average broke out above its 200-day moving average; this is known as a "golden cross."
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.
There are three stages to a golden cross. First, there must be a downtrend in a stock's price that eventually bottoms out. Then, the stock's shorter moving average crosses over its longer moving average, triggering a positive trend reversal. The third stage is when a stock continues the upward momentum 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.
HTGC has rallied 13.9% over the past four weeks, and the company is a #2 (Buy) on the Zacks Rank at the moment. This combination indicates HTGC could be poised for a breakout.
The bullish case only gets stronger once investors take into account HTGC's positive earnings outlook for the current quarter. There have been 2 upwards revisions compared to none lower over the past 60 days, and the Zacks Consensus Estimate has moved up as well.
With a winning combination of earnings estimate revisions and hitting a key technical level, investors should keep their eye on HTGC for more gains in the near future.