Published on 26 Dec 2021 on Zacks via Yahoo Finance

Sierra Wireless (SWIR)'s Technical Outlook is Bright After Key Golden Cross

From a technical perspective, Sierra Wireless, Inc. (SWIR) is looking like an interesting pick, as it just reached a key level of support. SWIR'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.

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.