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After Golden Cross, Alector (ALEC)'s Technical Outlook is Bright
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After reaching an important support level, Alector, Inc. (ALEC - Free Report) could be a good stock pick from a technical perspective. ALEC recently experienced a "golden cross" event, which saw its 50-day simple moving average breaking out above its 200-day simple moving average.
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.
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 is the opposite of a death cross, another technical event that indicates bearish price movement may be on the horizon.
Shares of ALEC have been moving higher over the past four weeks, up 26.8%. Plus, the company is currently a #3 (Hold) on the Zacks Rank, suggesting that ALEC could be poised for a breakout.
The bullish case solidifies once investors consider ALEC'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.
With a winning combination of earnings estimate revisions and hitting a key technical level, investors should keep their eye on ALEC for more gains in the near future.
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After Golden Cross, Alector (ALEC)'s Technical Outlook is Bright
After reaching an important support level, Alector, Inc. (ALEC - Free Report) could be a good stock pick from a technical perspective. ALEC recently experienced a "golden cross" event, which saw its 50-day simple moving average breaking out above its 200-day simple moving average.
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.
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 is the opposite of a death cross, another technical event that indicates bearish price movement may be on the horizon.
Shares of ALEC have been moving higher over the past four weeks, up 26.8%. Plus, the company is currently a #3 (Hold) on the Zacks Rank, suggesting that ALEC could be poised for a breakout.
The bullish case solidifies once investors consider ALEC'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.
With a winning combination of earnings estimate revisions and hitting a key technical level, investors should keep their eye on ALEC for more gains in the near future.