If history is any guide, there may be good fortune ahead for shares of Li Auto (NASDAQ:LI). 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 Li Auto, which is trading around $36.51 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 Li Auto's past and upcoming earnings expectations:
EPS Estimate | -0.10 | -0.04 | -0.02 | -0.03 |
EPS Actual | 0.07 | 0.11 | 0.05 | -0.01 |
Revenue Estimate | 1.44B | 1.59B | 1.16B | 681.79M |
Revenue Actual | 1.51B | 1.67B | 1.21B | 780.43M |
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This article was generated by Benzinga's automated content engine and reviewed by an editor.
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