Category Archives: Golden Cross

Technical Review–ASML #GoldenCross

Posted on December 21, 2022 by nlo-admin | 1 comment

There is an underlying technical pattern emerging within the chip sector. One of the most crucial component in chip making is the Lithography process and the leading (or perhaps only) company in this sector is ASML. Anyone wanting to understand the background behind this company can watch this CNBC video call Why The World Relies On ASML For Machines That Print Chips.

With that understanding in mind, chip making is a cyclical business with ups and downs and depended heavily in CapEx from companies such as TSMC, Intel, and Samsung. Our chart review today shows a very simple pattern known as Golden Cross which is when the 50 SMA is crossing above 200 SMA. Although it is consider to be a Bullish indicator, not many have back test this logic and provide some statistics behind it. We’ve done just that and the table below shows the detail.

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Posted in ASML, Golden Cross, technical, technical review

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Golden Cross Analysis: Transports & Russell 2000

Posted on August 12, 2020 by nlo-admin | Leave a comment

As the market continues to move higher, there will be more companies and indexes reaching the Golden Cross technical pattern. This is evident by the recent article, Dow transports and Russell 2000 see ‘golden cross’ materializing, which suggests that this pattern is bullish for the two indexes. Our recent article on this technical indicator shed light on how successful this pattern is when it’s applied to the Dow Jones Industrial Average.

The tool we developed allows us to quickly analyze the pattern against various indexes. Let’s see how successful the Dow Jones Transportation Average and Russell 2000 are with technical pattern known as the Golden Cross. Continue reading →

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Posted in Death Cross, Dow Jones Transportation Average, Dow Transports, Golden Cross, Russell 2000

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Golden Cross – How Golden Is It?

Posted on August 10, 2020 by nlo-admin | Leave a comment

With the market on an upswing again, there is a resugence of bullish articles. A recent article we came across pertains to a bullish technical pattern known as Golden Cross. The article, A bullish ‘golden cross’ forms in the Dow Industrials, did not explicitly say this is a buying opportunity. However, it was implied that a rally is upon us based on the last time this indication occurred on March 19, 2019.

The obvious next question we would ask the author is, how golden is this golden cross? After all, we have done an in-depth analysis on the opposite market indicator, the Death Cross, and found that it was not so deadly after all. So let’s get into the data and find out. Continue reading →

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Posted in Death Cross, Golden Cross

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Nordstrom – Technical Analysis

Posted on November 23, 2019 by nlo-admin | Leave a comment

Nordstrom (JWN), a major luxury retailer, has been struggling this year. The stock has fallen -27% and we would like to explore a technical pattern call the Golden Cross to see how well the indicator holds up with Nordstrom.

Here’s a general overview of the Golden Cross as defined by Investopedia.

The golden cross is a candlestick pattern that is a bullish signal in which a relatively short-term moving average crosses above a long-term moving average. The golden cross is a bullish breakout pattern formed from a crossover involving a security's short-term moving average breaking above its long-term moving average or resistance level.

In our observation, we’ve chosen to use the 50 day moving average as the short-term period and the 200 day moving average as the long-term period of review. Based on our data going back to 1982, this strategy has produced positive returns approximately 65% of the time, assuming we sell the stock within 253 trading days (or approximately 1 year) after the signal is triggered. The table below provides the details. Continue reading →

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Posted in Golden Cross, JWN

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