Published on 16 Aug 2022 on Zacks via Yahoo Finance

ChemoCentryx (CCXI) Now Trades Above Golden Cross: Time to Buy?

After reaching an important support level, ChemoCentryx, Inc. (CCXI) could be a good stock pick from a technical perspective. CCXI recently experienced a "golden cross" event, which saw its 50-day simple moving average breaking out above its 200-day simple moving average.

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.

There are three stages to a golden cross. First, there must be a downtrend in a stock's price that eventually bottoms out. Then, the stock's shorter moving average crosses over its longer moving average, triggering a positive trend reversal. The third stage is when a stock continues the upward momentum to higher prices.