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Smurfit Westrock (SW) Now Trades Above Golden Cross: Time to Buy?

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Smurfit Westrock PLC (SW - Free Report) reached a significant support level, and could be a good pick for investors from a technical perspective. Recently, SW'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.

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.

SW could be on the verge of a breakout after moving 19.4% higher over the last four weeks. Plus, the company is currently a #3 (Hold) on the Zacks Rank.

Looking at SW'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 SW

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


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