Yahoo Finance Banco Do Brasil SA (BDORY) Now Trades Above Golden Cross: Time to Buy?
Banco Do Brasil SA (BDORY) is looking like an interesting pick from a technical perspective, as the company reached a key level of support. Recently, BDORY's 50-day simple moving average crossed above its 200-day simple moving average, known as a "golden cross."
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.
This kind of chart pattern is the opposite of a death cross, which is a technical event that suggests future bearish price movement.
Shares of BDORY have been moving higher over the past four weeks, up 9.3%. Plus, the company is currently a #1 (Strong Buy) on the Zacks Rank, suggesting that BDORY could be poised for a breakout.
The bullish case solidifies once investors consider BDORY's positive earnings outlook. For the current quarter, no earnings estimate has been cut compared to 1 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 BDORY for more gains in the near future.
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Banco Do Brasil SA (BDORY) : Free Stock Analysis Report
