As Byrna Technologies Inc. (BYRN) hit a crucial support level, investors are now eyeing it as a potential stock to add to their portfolios. BYRN recently witnessed a significant technical event known as a “golden cross,” where its 50-day simple moving average surged past its 200-day simple moving average.
The Rise of the Golden Cross
Described as a bullish breakout signal, a golden cross occurs when a stock’s short-term moving average overtakes its long-term moving average. The convergence of the 50-day and the 200-day moving averages is particularly potent as it signifies a robust momentum shift.
The golden cross unfolds in three distinct phases. It begins with a bearish trend that eventually reaches a trough, followed by the short-term moving average crossing above the long-term average, symbolizing a reversal towards positivity. The final stage sees the stock continuing its upward trajectory towards higher valuations.
Golden Cross vs. Death Cross
While a golden cross indicates a bullish trend, a “death cross” forewarns of potential bearish sentiment on the horizon, presenting a contrast to the former’s optimistic forecast for a stock’s movement.
Over the past month, BYRN shares have been steadily climbing, boasting an impressive 42.6% increase. Besides, the company currently holds a #1 (Strong Buy) rating on the Zacks Rank, underlining the potential for a breakout in the near future.
A Positive Outlook
Adding to the bullish outlook is BYRN’s optimistic earnings forecast. Notably, there have been no downward revisions in earnings estimates for the current quarter, with one upward revision in the past 60 days. The Zacks Consensus Estimate has also seen an upward trend.
Investors are advised to keep a close watch on BYRN as it approaches a key technical juncture, coupled with positive earnings forecast revisions, hinting at potential gains in the coming days.