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New chart pattern on Nasdaq points to more gains

A man works at the NASDAQ exchange in New York.
Getty Images
A man works at the NASDAQ exchange in New York.

A chart pattern formed this week in the Nasdaq composite signals gains are ahead, if history is any guide.

The tech-heavy index fashioned a golden cross — a technical formation when the short-term moving average of a security or an index rises above the long-term average price.

In this case, the Nasdaq's 50-day moving average climbed above the 200-day moving average, indicating a pickup in trading momentum and possibly more short-term gains.

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