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A Bullish Sign Appears On HDFC Bank's Chart

If history is any guide, there may be good fortune ahead for shares of HDFC Bank (NYSE:HDB). A so-called "golden cross" has formed on its chart and, not surprisingly, this could be bullish for the stock.

Benzinga · 09/13/2022 11:21

If history is any guide, there may be good fortune ahead for shares of HDFC Bank (NYSE:HDB). A so-called "golden cross" has formed on its chart and, not surprisingly, this could be bullish for the stock.

What To Know: Many traders use moving average crossover systems to make their decisions.

When a shorter-term average price crosses above a longer-term average price, it could mean the stock is trending higher. If the short-term average price crosses below the long-term average price, it means the trend is lower.

Why It's Important: The 50-day and the 200-day simple moving averages are commonly used.

The golden cross occurs when the 50-day crosses above the 200-day. This could mean the long-term trend is changing.

That just happened with HDFC Bank, which is trading around $64.70 at publication time.

signals

Remember: Seasoned investors don't blindly trade Golden Crosses.

Instead, they use it as a signal to start looking for long positions based on other factors, like price levels and company fundamentals & events.

For seasoned investors, this is just a sign that it might be time to start considering possible long positions.

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Do you use the Golden Cross signal in your trading or investing? Share this article with a friend if you found it helpful!

This article was generated by Benzinga's automated content engine and reviewed by an editor.