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Arista Networks (ANET) Now Trades Above Golden Cross: Time to Buy?

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From a technical perspective, Arista Networks, Inc. (ANET - Free Report) is looking like an interesting pick, as it just reached a key level of support. ANET'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.

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.

ANET could be on the verge of a breakout after moving 15.6% higher over the last four weeks. Plus, the company is currently a #1 (Strong Buy) on the Zacks Rank.

The bullish case only gets stronger once investors take into account ANET's positive earnings outlook for the current quarter. There have been 1 upward revision compared to none lower over the past 60 days, and the Zacks Consensus Estimate has moved up as well.

Moving Average Chart for ANET

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


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