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    Home»Business»These stocks are approaching the coveted ‘golden cross’ chart pattern
    Business

    These stocks are approaching the coveted ‘golden cross’ chart pattern

    By July 18, 2024
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    These stocks are approaching the coveted ‘golden cross’ chart pattern


    A small number of stocks are on the cusp of signaling a bullish price chart pattern that may herald a breakout ahead. Investors view a golden cross chart pattern as a key indication that a stock could be headed for strong gains. The move refers to the point at which a stock’s 50-day moving average crosses above its 200-day counterpart. Analysts praise the move still more if the stock’s 200-day moving average is sloping upward. These moves come as recent all-time highs for major market averages fueled by technology and artificial intelligence bellwethers have broadened out to include to small caps, showing that, for now, investors are rotating out of the tech theme that has underpinned much of Wall Street since late 2022. CNBC Pro screened FactSet data to find stocks close to forming golden cross patterns that might suggest future gains. Here’s a look at the list we uncovered. UnitedHealth Group Shares of the health insurance company have advanced more than 8% in 2024. The stock’s 50-day moving average of $501.09 is within striking distance of its 200-day moving average of $510.19, indicating a possible golden cross if the recent trend holds. UnitedHealth Group beat Wall Street’s second-quarter revenue and earnings estimates on Tuesday. Jefferies analyst David Windley upgraded the stock to buy from hold in light of the strong second-quarter results, and lauded UnitedHealth’s efforts to cut costs, which he said could build continued strength in 2025. “The NT [medical loss ratio] outlook may not be crystal clear, but ‘clear enough’ in 1Q/2Q to rotate focus to a ’25 growth outlook that is favorable and improving over the past 2 months,” Windley said. Regency Centers Shares of the real estate investment trust, one of the largest domestic shopping center operators, have edged down more than 1% in 2024. Mizuho Securities managing director Haendel St. Juste upgraded Regency to outperform from neutral in a July 8 note, citing a favorable risk-reward balance and optimism that the REIT can score sizeable earnings growth going into 2025. “High quality shopping center portfolio, anchored by defensive tenants in a favorable demographic, supported by one of the best balance sheets in the space,” St. Juste said of Regency. Kimco Realty Kimco Realty, another REIT, also made screen of golden cross candidates. Shares have so far risen about 1% in 2024. St. Juste, the Mizuho analyst, also lauded Kimco’s recent acquisition of RPT Realty as a potential growth catalyst in the future, coupled with Kimco’s attractive valuation and near-term earnings outlook.



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