UK Markets close in 7 hrs 26 mins

After Golden Cross, Allied Motion Technologies (AMOT)'s Technical Outlook is Bright

  • Oops!
    Something went wrong.
    Please try again later.
·2-min read
In this article:
  • Oops!
    Something went wrong.
    Please try again later.

Allied Motion Technologies, Inc. (AMOT) is looking like an interesting pick from a technical perspective, as the company reached a key level of support. Recently, AMOT's 50-day simple moving average crossed above its 200-day simple moving average, known as a "golden cross."

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.

A successful golden cross event has three stages. It first begins when a stock's price on the decline bottoms out. Then, its shorter moving average crosses above its longer moving average, triggering a positive trend reversal. The third and final phase occurs when the stock maintains its upward momentum.

A golden cross is the opposite of a death cross, another technical event that indicates bearish price movement may be on the horizon.

AMOT has rallied 29.5% over the past four weeks, and the company is a #3 (Hold) on the Zacks Rank at the moment. This combination indicates AMOT could be poised for a breakout.

Once investors consider AMOT's positive earnings outlook for the current quarter, the bullish case only solidifies. No earnings estimate has gone lower in the past two months compared to 1 revisions higher, and the Zacks Consensus Estimate has increased as well.

Moving Average Chart for AMOT
Moving Average Chart for AMOT

Investors should think about putting AMOT on their watchlist given the ultra-important technical indicator and positive move in earnings estimates.


Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

Allied Motion Technologies, Inc. (AMOT) : Free Stock Analysis Report

To read this article on Zacks.com click here.

Zacks Investment Research

Our goal is to create a safe and engaging place for users to connect over interests and passions. In order to improve our community experience, we are temporarily suspending article commenting