Phinia (PHIN)'s Technical Outlook is Bright After Key Golden Cross

After reaching an important support level, PHINIA Inc. (PHIN) could be a good stock pick from a technical perspective. PHIN recently experienced a "golden cross" event, which saw its 50-day simple moving average breaking out above its 200-day simple moving average.

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.

A golden cross is the opposite of a death cross, another technical event that indicates bearish price movement may be on the horizon.

PHIN could be on the verge of a breakout after moving 15.5% higher over the last four weeks. Plus, the company is currently a #1 (Strong Buy) on the Zacks Rank.

The bullish case only gets stronger once investors take into account PHIN's positive earnings outlook for the current quarter. There have been 3 upward revisions compared to none lower over the past 60 days, and the Zacks Consensus Estimate has moved up as well.

Investors may want to watch PHIN for more gains in the near future given the company's key technical level and positive earnings estimate revisions.

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

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