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If history is any guide, there may be good fortune ahead for shares of Align Tech (NASDAQ:ALGN). A so-called “golden cross” has formed on its chart and, not surprisingly, this could be bullish for the stock.
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What To Know: Many traders use moving average crossover systems to make their decisions.
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When a shorter-term average price crosses above a longer-term average price, it could mean the stock is trending higher. If the short-term average price crosses below the long-term average price, it means the trend is lower.
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Why It’s Important: The 50-day and the 200-day simple moving averages are commonly used.
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The golden cross occurs when the 50-day crosses above the 200-day. This could mean the long-term trend is changing.
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That just happened with Align Tech, which is trading around $328.94 at publication time.
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Remember: Seasoned investors don’t blindly trade Golden Crosses.
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Instead, they use it as a signal to start looking for long positions based on other factors, like price levels and company fundamentals & events.
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For seasoned investors, this is just a sign that it might be time to start considering possible long positions.
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Do you use the Golden Cross signal in your trading or investing? Share this article with a friend if you found it helpful!
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This article was generated by Benzinga’s automated content engine and reviewed by an editor.