A Bullish Sign Appears On GameStop's Chart

 

If history is any guide, there may be good fortune ahead for shares of GameStop GME. 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 GameStop, which is trading around $42.55 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 GameStop’s past and upcoming earnings expectations:

 

Quarter Q1 2022 Q4 2021 Q3 2021 Q2 2021
EPS Estimate -0.36 0.21 -0.13 -0.17
EPS Actual -0.52 -0.47 -0.35 -0.19
Revenue Estimate 1.32B 2.22B 1.19B 1.12B
Revenue Actual 1.38B 2.25B 1.30B 1.18B

Do you use the Golden Cross signal in your trading or investing? Share this article with a friend if you found it helpful!

This article was generated by Benzinga’s automated content engine and reviewed by an editor.

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