Docoh
Loading...

Mon. 4 Oct 2021, 11:49am ETBenzinga
In: Markets, Movers, Trading Ideas

If history is any guide, there may be good fortune ahead for shares of Cognizant Tech Solns(NASDAQ:CTSH). A so-called "golden cross" has formed on its chart and, not surprisingly, this could be bullish for the stock.

What To Know: Many traders use moving average crossover systems to make their decisions.

When a shorter-term average price crosses above a longer-term average price, it could mean the stock is trending higher. If the short-term average price crosses below the long-term average price, it means the trend is lower.

Why It's Important: The 50-day and the 200-day simple moving averages are commonly used.

The golden cross occurs when the 50-day crosses above the 200-day. This could mean the long-term trend is changing.

That just happened with Cognizant Tech Solns, which is trading around $75.16 at publication time.

Remember: Seasoned investors don't blindly trade Golden Crosses.

Instead, they use it as a signal to start looking for long positions based on other factors, like price levels and company fundamentals & events.

For seasoned investors, this is just a sign that it might be time to start considering possible long positions.

With that in mind, take a look at Cognizant Tech Solns's past and upcoming earnings expectations:

Quarter Q2 2021 Q1 2021 Q4 2020 Q3 2020
EPS Estimate 0.96 0.94 0.90 0.90
EPS Actual 0.99 0.97 0.67 0.97
Revenue Estimate 4.44 B 4.37 B 4.25 B 4.15 B
Revenue Actual 4.58 B 4.40 B 4.18 B 4.24 B

Do you use the Golden Cross signal in your trading or investing? Share this article with a friend if you found it helpful!