Should You Buy Evercore (EVR) After Golden Cross?

From a technical perspective, Evercore Inc (EVR) is looking like an interesting pick, as it just reached a key level of support. EVR'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.

Considered an important signifier for a bullish breakout, a golden cross is a technical chart pattern that's formed when a stock's short-term moving average breaks above a longer-term moving average; the most common crossover involves the 50-day and the 200-day, since bigger time periods tend to form stronger breakouts.

Golden crosses have three key stages that investors look out for. It starts with a downtrend in a stock's price that eventually bottoms out, followed by the stock's shorter moving average crossing over its longer moving average and triggering a trend reversal. The final stage is when a stock continues the upward climb 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.

EVR could be on the verge of a breakout after moving 21.1% higher over the last four weeks. Plus, the company is currently a #1 (Strong Buy) on the Zacks Rank.

The bullish case solidifies once investors consider EVR's positive earnings outlook. For the current quarter, no earnings estimate has been cut compared to 2 revisions higher in the past 60 days. The Zacks Consensus Estimate has increased too.

Given this move in earnings estimates and the positive technical factor, investors may want to keep their eye on EVR for more gains in the near future.

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This article originally published on Zacks Investment Research (zacks.com).

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