The broad stock market is taking a breather from its rally. That means the “Magnificent Seven” stocks are also catching their breath after a strong rally that started late in 2023. Despite the recent pullback, certain members of that cohort still show technical signs of bullishness.
Those signs have been apparent in the moving average, which can be extrapolated for various time frames. Two common moving averages, the 200-day and 50-day, can portend to potential short-term and long-term price moves for a specific stock or ETF.
“The 200-day moving average shows the average closing price of a stock over the last 200 trading days. Traders track moving averages to gauge a stock’s momentum,” Motley Fool explained.
When the short-term average, the 50-day, crosses above the 200-day moving average, it could be a sign of bullish trends to come. Traders who have a proclivity toward using moving averages may be aware that this is also called the “golden cross.”
“For example, a so-called golden cross is when the 50-day moving average passes the 200-day moving average, a sign that investors are getting bullish on a stock. Interestingly enough, the current price of four Magnificent Seven stocks is above the 50-day moving average and the 200-day moving average — which is a very bullish sign.