If history is any guide, there may be luck for the actions of CNA Financial (NYSE: ANC). A so-called “golden cross” has formed on its chart and, unsurprisingly, this could be bullish for the stock.
What there is to know: Many traders use moving average crossover systems to make their decisions.
When a short-term average price rises above a longer-term average price, it can mean that the stock is trending higher. If the short-term average price crosses below the long-term average price, it means the trend is down.
Why it matters: 50 and 200 day simple moving averages are commonly used.
The golden cross occurs when the 50 days exceeds the 200 days. This could mean that the long-term trend is changing.
This just happened with CNA Financial, which is trading around $47.82 at press time.
Remember: Seasoned investors do not blindly trade Golden Crosses.
Instead, they use it as a signal to start looking for long positions based on other factors, such as price levels and company fundamentals and events.
For seasoned investors, this is just a sign that it may be time to start considering possible long positions.
With that in mind, take a look at CNA Financial’s past and future earnings forecasts:
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This article was generated by Benzinga’s automated content engine and reviewed by an editor.