Published on 15 Feb 2024 on Zacks via Yahoo Finance
Cedar Fair, L.P. (FUN) Just Flashed Golden Cross Signal: Do You Buy?
After reaching an important support level, Cedar Fair, L.P. (FUN) could be a good stock pick from a technical perspective. FUN 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.
A successful golden cross event has three stages. It first begins when a stock's price on the decline bottoms out. Then, its shorter moving average crosses above its longer moving average, triggering a positive trend reversal. The third and final phase occurs when the stock maintains its upward momentum.