EMA Cross 50/200Golden cross is finally here50 Day EMA -->...

EMA Cross 50/200

Golden cross is finally here

50 Day EMA --> 397.7085
200 Day EMA --> 397.5018

Technical indicators suggest this maybe the start of a bull run

What Is a Golden Cross?

A golden cross is a chart pattern in which a relatively short-term moving average crosses above a long-term moving average. The golden cross is a bullish breakout pattern formed from a crossover involving a security's short-term moving average (such as the 50-day moving average) crossing above its long-term moving average (such as the 200-day moving average) or resistance level.

As long-term indicators carry more weight, the golden cross indicates the possibility of a long-term bull market emerging. High trading volumes generally reinforce the indicator.

KEY TAKEAWAYS

• A golden cross is a technical chart pattern indicating the potential for a major rally.
• The golden cross appears on a chart when a stock’s short-term moving average crosses above its long-term moving average.
• The golden cross can be contrasted with a death cross indicating a bearish price movement.

How Does a Golden Cross Form?

The golden cross is a momentum indicator, which means that prices are continuously increasing—gaining momentum. Traders and investors have changed their outlooks to bullish rather than bearish. The indicator generally has three stages.

The first stage requires that a downtrend eventually bottoms out as buyers overpower sellers. In the second stage, the shorter moving average crosses over the larger moving average to trigger a breakout and confirms a downward trend reversal.

The last stage is a continuing uptrend after the crossover. The moving averages act as support levels on pullbacks until they cross back down.

The most commonly used moving averages in the golden cross are the 50-day- and 200-day moving averages. Generally, larger periods tend to form stronger, lasting breakouts. For example, the 50-day moving average crossover up through the 200-day moving average on an index like the S&P 500 is one of the most popular bullish market signals.

Day traders commonly use smaller periods like the 5-day and 15-day moving averages to trade intra-day golden cross breakouts. Some traders might use different periodic increments, like weeks or months, depending on their trading preferences and what they believe works for them.

But when choosing different periods, it's important to understand that the larger the chart time frame, the stronger and more lasting the golden cross breakout tends to be.