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The January rally has sprouted some Golden Crosses that investors should take note. A Golden Cross is when the 50-day moving average edges atop its 200-day moving average. It indicates that the intermediate-term uptrend has overtaken the longer-term trend. Here are some stocks that formed the Golden Cross the past month: CAIRN, PIRHEALTH, TATACOMM, WIPRO.
The GC marks the spot when a bounce within a bear market transitions to a bull market. All sustained bull markets, by definition, come with the 50 DMA above the 200 DMA.
It looks like the NIFTY has some ways to go before the cross, so its not time yet to break out the champagne. However, Hang Seng index (tracked by the HNGSNGBEES) seems to have crossed over to the bull camp.
Go Bulls!
