Intel (INTC) has been on a tear lately, enough so that it's about to experience a "golden cross," which occurs when a stock's 50-day moving average crosses above its 200-day moving average while both moving averages are rising.Ā A six-month chart of Intel is shown below with both its 50-day and 200-day moving average included.
The golden cross is supposed to be a positive technical formation, but it seemsĀ like it getsĀ talked about much more often than it turns out to be right.Ā At any rate, below we highlight all of the golden crosses that Intel has experienced since 1985.
As shown, Intel has had 12 golden crosses over the last 26 years, with the last occurring on May 10th, 2007.Ā For Intel at least, the golden cross has worked out pretty well.Ā While its average change in the week after its prior 12 golden crosses has been -0.10% (median +0.48%), it has averaged a gain of 3.02% over the next month and 8.34% over the next three months, with positive returns occurring two-thirds of the time.
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