These three stocks are on the verge of forming a bullish 'golden cross' pattern

Published Wed, Mar 27 202410:12 AM EDT

Even as the market trades near its highs, these three stocks could have even more room for upside, according to a popular chart pattern favored by technical analysts as a bullish indicator. This technical indicator is known as a "golden cross," when a stock's 50-day moving average (DMA) crosses over its 200-day moving average. Investors view a golden cross as a bullish indicator of positive momentum continuing into the longer term. Two of the following three names in the S & P 500 about to form a golden cross pattern are oil companies. Energy is the best-performing sector within the broad market index in March, up more than 8% this month. Exxon Mobil has jumped nearly 9% month to date through Tuesday's close, as the energy sector revs higher. The company's 50-DMA is currently at 104.58, just under its 200-DMA of 106.27. More than half of the analysts covering Exxon have issued a buy or a strong buy rating on the stock, according to LSEG. The consensus price target suggests shares gaining more than 9% from their current level. The company is currently in a dispute with Chevron over assets in oil-rich Guyana . Year to date, Exxon is up roughly 14%. The other oil company close to forming a golden cross is Occidental Petroleum . Occidental has a 50-DMA of 59.65, slightly lower than its 20-DMA of 60.94. To be sure, analysts are mostly sticking to the sidelines on the stock. Two-thirds of those covering the company rate it a hold, and the average price target implies upside potential of about 4%. Occidental has gained nearly 5% in March, lagging the overall energy sector during the period. The stock is up 6% in 2024. The final stock nearing a golden cross formation is Genuine Parts . The stock's 50-DMA stands at 146.61, while its 200-DMA is 147.18. Wall Street isn't so sure about the auto replacement parts company, however. Eight out of 13 analysts covering the stock give it a hold rating, and the stock is already trading 0.3% above its average price target. Genuine Parts has added 2.2% this month, and it's up more than 10% year to date.