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After Golden Cross, Diversified Healthcare (DHC)'s Technical Outlook is Bright
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After reaching an important support level, Diversified Healthcare Trust (DHC - Free Report) could be a good stock pick from a technical perspective. DHC recently experienced a "golden cross" event, which saw its 50-day simple moving average breaking out above its 200-day simple moving average.
There's a reason traders love a golden cross -- it's a technical chart pattern that can indicate a bullish breakout is on the horizon. This kind of crossover is formed when a stock's short-term moving average breaks above a longer-term moving average. Typically, a golden cross involves the 50-day and the 200-day moving averages, 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 is the opposite of a death cross, another technical event that indicates bearish price movement may be on the horizon.
Shares of DHC have been moving higher over the past four weeks, up 14.7%. Plus, the company is currently a #2 (Buy) on the Zacks Rank, suggesting that DHC could be poised for a breakout.
The bullish case only gets stronger once investors take into account DHC's positive earnings outlook for the current quarter. There have been 1 upwards revisions compared to none lower over the past 60 days, and the Zacks Consensus Estimate has moved up as well.
Investors should think about putting DHC on their watchlist given the ultra-important technical indicator and positive move in earnings estimates.
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After Golden Cross, Diversified Healthcare (DHC)'s Technical Outlook is Bright
After reaching an important support level, Diversified Healthcare Trust (DHC - Free Report) could be a good stock pick from a technical perspective. DHC recently experienced a "golden cross" event, which saw its 50-day simple moving average breaking out above its 200-day simple moving average.
There's a reason traders love a golden cross -- it's a technical chart pattern that can indicate a bullish breakout is on the horizon. This kind of crossover is formed when a stock's short-term moving average breaks above a longer-term moving average. Typically, a golden cross involves the 50-day and the 200-day moving averages, 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 is the opposite of a death cross, another technical event that indicates bearish price movement may be on the horizon.
Shares of DHC have been moving higher over the past four weeks, up 14.7%. Plus, the company is currently a #2 (Buy) on the Zacks Rank, suggesting that DHC could be poised for a breakout.
The bullish case only gets stronger once investors take into account DHC's positive earnings outlook for the current quarter. There have been 1 upwards revisions compared to none lower over the past 60 days, and the Zacks Consensus Estimate has moved up as well.
Investors should think about putting DHC on their watchlist given the ultra-important technical indicator and positive move in earnings estimates.