Golden Cross

A Golden Cross happens when a stock's 50-day moving average (the average price over the last 50 days) crosses above its 200-day moving average (the average over 200 days). Think of it as a short-term trend line crossing above a long-term trend line. Traders watch for this because it's traditionally seen as a bullish signal—suggesting the stock's momentum is shifting upward. You'll hear about Golden Crosses on financial news and in technical analysis discussions, especially when investors are looking for reasons to feel optimistic about a stock's direction. For example, if TechCorp's 50-day average climbs above its 200-day average, some traders might interpret that as a green light to buy. That said, it's just one signal among many, not a guarantee.