These 8 stocks rally with a 100% hit rate when a ‘golden cross’ chart pattern forms

Published Tue, Dec 26 20236:21 PM EST

Eight stocks have rallied every single time after a chart pattern known as a "golden cross" has occurred, according to CNBC Pro 's analysis. The golden cross pattern occurs when a stock's short-term 50-day moving average goes above its long-term 200-day moving average on a chart. Wall Street often sees this as a bullish signal and an indicator of strong upward momentum that often precedes sustained gains. The technical analysis found that share prices rallied 100% of the time on average in the 30 days after forming the pattern. Extending the analysis to 60 and 90 days also showed these stocks consistently make gains once the golden cross appears. The analysis, covering all U.S. stocks with over $10 million in market capitalization from Dec. 19, 2013, to Dec. 19, 2023, revealed the following companies with a perfect record of post-golden cross gains: The above table shows the shares of Allegiant Travel , the parent company of budget airline Allegiant Air, rose 10.28% on average in the 30 days following a golden cross pattern formation. The pattern occurred five times over the analysis period. Other stocks that have had a 100% success rate for a golden cross formation over the past decade include South Korean video game developer Gravity Co 's U.S.-listed shares, financial technology company Jack Henry & Associates , clinical research firm Medpace , accounting software maker Model N , medical diagnostics company RadNet , biotech firm Revance Therapeutics and offshore oil and gas services firm SEACOR Marine Holdings . Although these eight stocks are not currently exhibiting the golden cross pattern, investors may want to monitor the technical indicators, as forming a golden cross in the future could signal an opportune time to buy into rising upward momentum. Technical analysts view the golden cross as a strong indicator that a stock's price has built solid support and has strong growth potential. But investors should still consider fundamentals and valuations before purchasing any stock.