Published on 9 Nov 2021 on Zacks via Yahoo Finance
After Golden Cross, Kinsale Capital Group, Inc. (KNSL)'s Technical Outlook is Bright
From a technical perspective, Kinsale Capital Group, Inc. (KNSL) is looking like an interesting pick, as it just reached a key level of support. KNSL's 50-day simple moving average crossed above its 200-day simple moving average, which is known as a "golden cross" in the trading world.
A golden cross is a technical chart pattern that can signify a potential bullish breakout. It's formed from a crossover involving a security's short-term moving average breaking above a longer-term moving average, with the most common moving averages being 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.