Manhattan Associates, Inc. (MANH) reached a significant support level, and could be a good pick for investors from a technical perspective. Recently, MANH’s 50-day simple moving average broke out above its 200-day moving average; this is known as a “golden cross.” <\/p>\n
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. <\/p>\n
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. <\/p>\n
A golden cross is the opposite of a death cross, another technical event that indicates bearish price movement may be on the horizon. <\/p>\n
Over the past four weeks, MANH has gained 21.7%. The company currently sits at a #2 (Buy) on the Zacks Rank, also indicating that the stock could be poised for a breakout. <\/p>\n
The bullish case solidifies once investors consider MANH’s positive earnings outlook. For the current quarter, no earnings estimate has been cut compared to 5 revisions higher in the past 60 days. The Zacks Consensus Estimate has increased too. <\/p>\n
Investors may want to watch MANH for more gains in the near future given the company’s key technical level and positive earnings estimate revisions. <\/p>\n 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<\/a> <\/p>\n Manhattan Associates, Inc. (MANH) : Free Stock Analysis Report<\/a> <\/p>\n This article originally published on Zacks Investment Research (zacks.com).<\/a> <\/p>\n<\/a> Moving Average Chart for MANH <\/p>\n