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EverQuote (EVER) Just Flashed Golden Cross Signal: Do You Buy?

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EverQuote, Inc. (EVER - Free Report) reached a significant support level, and could be a good pick for investors from a technical perspective. Recently, EVER's 50-day simple moving average broke out above its 200-day moving average; this is known as a "golden cross."

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.

This kind of chart pattern is the opposite of a death cross, which is a technical event that suggests future bearish price movement.

Over the past four weeks, EVER has gained 17.2%. The company currently sits at a #1 (Strong Buy) on the Zacks Rank, also indicating that the stock could be poised for a breakout.

The bullish case solidifies once investors consider EVER's positive earnings outlook. For the current quarter, no earnings estimate has been cut compared to 6 revisions higher in the past 60 days. The Zacks Consensus Estimate has increased too.

Moving Average Chart for EVER

Investors may want to watch EVER for more gains in the near future given the company's key technical level and positive earnings estimate revisions.


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