If history is any guide, there could be good luck ahead for the shares Prudential puk, A so-called “Golden Cross” has formed on its charts and it’s no surprise that it could be bullish for the stock.
what to know: Many traders use the Moving Average crossover system for their decision making.
When a shorter-term average price exceeds a longer-term average price, it can mean that the stock is trending higher. If the short-term average price moves below the long-term average price, it means that the trend is down.
Why this is important: Commonly used are the 50-day and 200-day simple moving averages.
The golden cross occurs when the 50 day crosses above the 200 day. This may mean that the long-term trend is changing.
That just happened with Prudential, which is trading at around $29.11 at the time of publication.
remember: Experienced investors do not trade the golden cross indiscriminately.
Instead, they use it as a signal to begin looking for long positions based on price levels and other factors such as company fundamentals and events.
For seasoned investors, this is just a sign that it may be time to start considering a potential long position.
Do you use the Golden Cross signal in your trading or investing? Share this article with a friend if you found it useful!
This article was generated by Benzinga’s automated content engine and reviewed by an editor.