Yahoo Finance Spruce Biosciences, Inc. (SPRB) Now Trades Above Golden Cross: Time to Buy?
Spruce Biosciences, Inc. (SPRB) reached a significant support level, and could be a good pick for investors from a technical perspective. Recently, SPRB's 50-day simple moving average broke out above its 200-day moving average; this is known as a "golden cross."
There's a reason traders love a golden cross -- it's a technical chart pattern that can indicate a bullish breakout is on the horizon. This kind of crossover is formed when a stock's short-term moving average breaks above a longer-term moving average. Typically, a golden cross involves the 50-day and the 200-day moving averages, 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.
SPRB could be on the verge of a breakout after moving 147.9% higher over the last four weeks. Plus, the company is currently a #3 (Hold) on the Zacks Rank.
The bullish case solidifies once investors consider SPRB'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.
Investors may want to watch SPRB for more gains in the near future given the company's key technical level and positive earnings estimate revisions.
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Spruce Biosciences, Inc. (SPRB) : Free Stock Analysis Report
