Published on 20 Feb 2024 on Zacks via Yahoo Finance

VAXART, INC. (VXRT) Now Trades Above Golden Cross: Time to Buy?

VAXART, INC. (VXRT) reached a significant support level, and could be a good pick for investors from a technical perspective. Recently, VXRT's 50-day simple moving average broke out above its 200-day moving average; this is known as a "golden cross."

There's a reason traders love a golden cross -- it's a technical chart pattern that can indicate a bullish breakout is on the horizon. This kind of crossover is formed when a stock's short-term moving average breaks above a longer-term moving average. Typically, a golden cross involves the 50-day and the 200-day moving averages, 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.