Yahoo Finance Tencent Music Entertainment Group Sponsored ADR (TME) Now Trades Above Golden Cross: Time to Buy?
Tencent Music Entertainment Group Sponsored ADR (TME) is looking like an interesting pick from a technical perspective, as the company reached a key level of support. Recently, TME'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.
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 is the opposite of a death cross, another technical event that indicates bearish price movement may be on the horizon.
Over the past four weeks, TME has gained 86.4%. The company currently sits at a #3 (Hold) on the Zacks Rank, also indicating that the stock could be poised for a breakout.
Looking at TME's earnings expectations, investors will be even more convinced of the bullish uptrend. For the current quarter, there have been 1 changes higher compared to none lower over the past 60 days, and the Zacks Consensus Estimate has moved up as well.
Investors should think about putting TME on their watchlist given the ultra-important technical indicator and positive move in earnings estimates.
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Tencent Music Entertainment Group Sponsored ADR (TME) : Free Stock Analysis Report
