If history is any guide, there may be good fortune ahead for shares of GameStop (NYSE:GME). A so-called "golden cross" has formed on its chart and, not surprisingly, this could be bullish for the stock.
What To Know: Many traders use moving average crossover systems to make their decisions.
When a shorter-term average price crosses above a longer-term average price, it could mean the stock is trending higher. If the short-term average price crosses below the long-term average price, it means the trend is lower.
Why It's Important: The 50-day and the 200-day simple moving averages are commonly used.
The golden cross occurs when the 50-day crosses above the 200-day. This could mean the long-term trend is changing.
That just happened with GameStop, which is trading around $42.55 at publication time.
Remember: Seasoned investors don't blindly trade Golden Crosses.
Instead, they use it as a signal to start looking for long positions based on other factors, like price levels and company fundamentals & events.
For seasoned investors, this is just a sign that it might be time to start considering possible long positions.
With that in mind, take a look at GameStop's past and upcoming earnings expectations:
EPS Estimate | -0.36 | 0.21 | -0.13 | -0.17 |
EPS Actual | -0.52 | -0.47 | -0.35 | -0.19 |
Revenue Estimate | 1.32B | 2.22B | 1.19B | 1.12B |
Revenue Actual | 1.38B | 2.25B | 1.30B | 1.18B |
This article was generated by Benzinga's automated content engine and reviewed by an editor.
© 2022 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Read at Benzinga