After Golden Cross, Assured Guaranty (AGO)'s Technical Outlook is Bright

From a technical perspective, Assured Guaranty Ltd. (AGO) is looking like an interesting pick, as it just reached a key level of support. AGO's 50-day simple moving average crossed above its 200-day simple moving average, which is known as a "golden cross" in the trading world.There's a reason traders love a golden cross -- it's a technical chart pattern that can indicate a bullish breakout is on the horizon. This kind of crossover is formed when a stock's short-term moving average breaks above a longer-term moving average. Typically, a golden cross involves the 50-day and the 200-day moving averages, since bigger time periods tend to form stronger breakouts.There are three stages to a golden cross. First, there must be a downtrend in a stock's price that eventually bottoms out. Then, the stock's shorter moving average crosses over its longer moving average, triggering a positive trend reversal. The third stage is when a stock continues the upward momentum to higher prices.A golden cross is the opposite of a death cross, another technical event that indicates bearish price movement may be on the horizon.AGO has rallied 8.9% over the past four weeks, and the company is a #2 (Buy) on the Zacks Rank at the moment. This combination indicates AGO could be poised for a breakout.The bullish case only gets stronger once investors take into account AGO's positive earnings outlook for the current quarter. There have been 1 upward revision compared to none lower over the past 60 days, and the Zacks Consensus Estimate has moved up as well.Investors may want to watch AGO for more gains in the near future given the company's key technical level and positive earnings estimate revisions.Beyond Nvidia: AI's Second Wave Is HereThe AI revolution has already minted millionaires. But the stocks everyone knows about aren't likely to keep delivering the biggest profits. Little-known AI firms tackling the world's biggest problems may be more lucrative in the coming months and years.See "2nd Wave" AI stocks now >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Assured Guaranty Ltd. (AGO): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks