Vornado Realty Trust (VNO) reached a significant support level, and could be a good pick for investors from a technical perspective. Recently, VNO's 50-day simple moving average broke out above its 200-day moving average; this is known as a "golden cross."
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.
A golden cross contrasts with a death cross, another widely-followed chart pattern that suggests bearish momentum could be on the horizon.
VNO has rallied 12.5% over the past four weeks, and the company is a #3 (Hold) on the Zacks Rank at the moment. This combination indicates VNO could be poised for a breakout.
Looking at VNO's earnings expectations, investors will be even more convinced of the bullish uptrend. For the current quarter, there have been 4 changes higher compared to none lower over the past 60 days, and the Zacks Consensus Estimate has moved up as well.
With a winning combination of earnings estimate revisions and hitting a key technical level, investors should keep their eye on VNO for more gains in the near future.
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Vornado Realty Trust (VNO): Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).