Gaming and Leisure Properties (GLPI) Just Flashed Golden Cross Signal: Do You Buy?

Gaming and Leisure Properties, Inc. (GLPI) reached a significant support level, and could be a good pick for investors from a technical perspective. Recently, GLPI's 50-day simple moving average broke out above its 200-day moving average; this is known as a "golden cross."

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.

This kind of chart pattern is the opposite of a death cross, which is a technical event that suggests future bearish price movement.

GLPI has rallied 9.5% over the past four weeks, and the company is a #2 (Buy) on the Zacks Rank at the moment. This combination indicates GLPI could be poised for a breakout.

The bullish case only gets stronger once investors take into account GLPI'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.

Given this move in earnings estimates and the positive technical factor, investors may want to keep their eye on GLPI 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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