If history is any guide, there may be good fortune ahead for shares of Cadence Design Sys (NASDAQ:CDNS). 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 Cadence Design Sys, which is trading around $187.87 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 Cadence Design Sys's past and upcoming earnings expectations:
EPS Estimate | 0.96 | 1.02 | 0.76 | 0.75 |
EPS Actual | 1.08 | 1.17 | 0.82 | 0.80 |
Revenue Estimate | 836.89M | 857.32M | 757.38M | 743.65M |
Revenue Actual | 857.52M | 901.77M | 773.04M | 750.89M |
This article was generated by Benzinga's automated content engine and reviewed by an editor.
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