Golden crosses and death crosses are common signals in technical analysis and refer to the relationship between short-term and long-term moving averages. The golden cross typically is seen as a bullish sign, perhaps a stock that has or is about to break out. The death cross, on the other hand, can be a bearish sign, perhaps warning investors to get out of the way or signaling that it may be time short the stock.
Here are five tech giants that recently saw their 50-day moving average cross above the 200-day average, a golden cross, and may be worth a look now.
Alphabet Inc. (NASDAQ: GOOGL) saw its golden cross on the final trading day of March, but the gap between the two averages so far is less than 1% of the share price. Note that the GOOG shares also saw a golden cross recently. This FANG stock is still favored by Merrill Lynch. Shares are about 16% higher year to date, and analysts on average recommend buying shares.
International Business Machines Corp.’s (NYSE: IBM) short-term moving average crossed above the long-term one last week, the first time it has been there since last May. IBM recently became the best performing Dow Jones industrial so far this year. Its shares are up more than 26% since the beginning of the year, while the Dow is up less than 13%. Yet, analysts overall do not recommend buying shares.
Since Texas Instruments Inc.’s (NASDAQ: TXN) recent golden cross, the gap between the two averages has widened to almost two bucks. Some think this company would benefit from a trade settlement between the United States and China. Year to date, the shares are up 19% or so, about the same as the Nasdaq. The consensus recommendation is to hold shares, though that sentiment has improved a bit in recent months.
Dell Technologies Inc.’s (NYSE: DELL) golden cross of last week was a recovery from a death cross back in February. The gap between the two averages has widened to almost 3% of the share price. This is another tech stock favored by Merrill Lynch. Shares now are up about 26% year to date. Analysts on average recommend buying shares.
Snap Inc. (NYSE: SNAP) saw its golden cross this week, and the gap between those moving averages was almost 2% of the share price on last look. Better-than-expected quarterly results led to a couple of analyst upgrades for Snap. Its shares are up more than 102% year to date, but here too analysts recommend holding the shares.