InfuSystems Holdings, Inc. (INFU)'s Technical Outlook is Bright After Key Golden Cross

InfuSystems Holdings, Inc. (INFU) reached a significant support level, and could be a good pick for investors from a technical perspective. Recently, INFU's 50-day simple moving average broke out above its 200-day moving average; this is known as a "golden cross."A golden cross is a technical chart pattern that can signify a potential bullish breakout. It's formed from a crossover involving a security's short-term moving average breaking above a longer-term moving average, with the most common moving averages being the 50-day and the 200-day, since bigger time periods tend to form stronger breakouts.A successful golden cross event has three stages. It first begins when a stock's price on the decline bottoms out. Then, its shorter moving average crosses above its longer moving average, triggering a positive trend reversal. The third and final phase occurs when the stock maintains its upward momentum.This kind of chart pattern is the opposite of a death cross, which is a technical event that suggests future bearish price movement.Shares of INFU have been moving higher over the past four weeks, up 69.3%. Plus, the company is currently a #1 (Strong Buy) on the Zacks Rank, suggesting that INFU could be poised for a breakout.The bullish case solidifies once investors consider INFU's positive earnings outlook. For the current quarter, no earnings estimate has been cut compared to 1 revision higher in the past 60 days. The Zacks Consensus Estimate has increased too.Investors should think about putting INFUon their watchlist given the ultra-important technical indicator and positive move in earnings estimates.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 InfuSystems Holdings, Inc. (INFU): 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