Janus Henderson Group plc (JHG) Now Trades Above Golden Cross: Time to Buy?
After reaching an important support level, Janus Henderson Group plc (JHG) could be a good stock pick from a technical perspective. JHG recently experienced a "golden cross" event, which saw its 50-day simple moving average breaking out above its 200-day simple moving average.
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.
Shares of JHG have been moving higher over the past four weeks, up 8.3%. Plus, the company is currently a #1 (Strong Buy) on the Zacks Rank, suggesting that JHG could be poised for a breakout.
The bullish case only gets stronger once investors take into account JHG's positive earnings outlook for the current quarter. There have been 5 upward revisions compared to none lower over the past 60 days, and the Zacks Consensus Estimate has moved up as well.
Investors should think about putting JHGon their watchlist given the ultra-important technical indicator and positive move in earnings estimates.
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Janus Henderson Group plc (JHG): Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).
Source Zacks-com
