Yahoo Finance Should You Buy Kuehne & Nagel International Ag (KHNGY) After Golden Cross?
Kuehne & Nagel International Ag (KHNGY) reached a significant support level, and could be a good pick for investors from a technical perspective. Recently, KHNGY's 50-day simple moving average broke out above its 200-day moving average; this is known as a "golden cross."
A golden cross is a technical chart pattern that can signify a potential bullish breakout. It's formed from a crossover involving a security's short-term moving average breaking above a longer-term moving average, with the most common moving averages being the 50-day and the 200-day, since bigger time periods tend to form stronger breakouts.
A successful golden cross event has three stages. It first begins when a stock's price on the decline bottoms out. Then, its shorter moving average crosses above its longer moving average, triggering a positive trend reversal. The third and final phase occurs when the stock maintains its upward momentum.
This kind of chart pattern is the opposite of a death cross, which is a technical event that suggests future bearish price movement.
KHNGY has rallied 17.9% over the past four weeks, and the company is a #3 (Hold) on the Zacks Rank at the moment. This combination indicates KHNGY could be poised for a breakout.
Once investors consider KHNGY's positive earnings outlook for the current quarter, the bullish case only solidifies. No earnings estimate has gone lower in the past two months compared to 1 revisions higher, and the Zacks Consensus Estimate has increased as well.
Investors should think about putting KHNGY on their watchlist given the ultra-important technical indicator and positive move in earnings estimates.
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Kuehne & Nagel International Ag (KHNGY) : Free Stock Analysis Report
