Yahoo Finance RenaissanceRe (RNR)'s Technical Outlook is Bright After Key Golden Cross
From a technical perspective, RenaissanceRe Holdings Ltd. (RNR) is looking like an interesting pick, as it just reached a key level of support. RNR's 50-day simple moving average crossed above its 200-day simple moving average, which is known as a "golden cross" in the trading world.
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.
Golden crosses have three key stages that investors look out for. It starts with a downtrend in a stock's price that eventually bottoms out, followed by the stock's shorter moving average crossing over its longer moving average and triggering a trend reversal. The final stage is when a stock continues the upward climb to higher prices.
A golden cross contrasts with a death cross, another widely-followed chart pattern that suggests bearish momentum could be on the horizon.
Over the past four weeks, RNR has gained 8.8%. The company currently sits at a #2 (Buy) on the Zacks Rank, also indicating that the stock could be poised for a breakout.
Looking at RNR's earnings expectations, investors will be even more convinced of the bullish uptrend. For the current quarter, there have been 4 changes higher compared to none lower over the past 60 days, and the Zacks Consensus Estimate has moved up as well.
Investors should think about putting RNR on their watchlist given the ultra-important technical indicator and positive move in earnings estimates.
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RenaissanceRe Holdings Ltd. (RNR) : Free Stock Analysis Report
