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Guardian Pharmacy Services (GRDN)'s Technical Outlook is Bright After Key Golden Cross

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

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 contrasts with a death cross, another widely-followed chart pattern that suggests bearish momentum could be on the horizon.

Shares of GRDN have been moving higher over the past four weeks, up 30%. Plus, the company is currently a #2 (Buy) on the Zacks Rank, suggesting that GRDN could be poised for a breakout.

The bullish case solidifies once investors consider GRDN'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.

Moving Average Chart for GRDN

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


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