After Golden Cross, CuriosityStream Inc. (CURI)'s Technical Outlook is Bright

After reaching an important support level, CuriosityStream Inc. (CURI) could be a good stock pick from a technical perspective. CURI recently experienced a "golden cross" event, which saw its 50-day simple moving average breaking out above its 200-day simple moving average.

There's a reason traders love a golden cross -- it's a technical chart pattern that can indicate a bullish breakout is on the horizon. This kind of crossover is formed when a stock's short-term moving average breaks above a longer-term moving average. Typically, a golden cross involves the 50-day and the 200-day moving averages, since bigger time periods tend to form stronger breakouts.

A successful golden cross event has three stages. It first begins when a stock's price on the decline bottoms out. Then, its shorter moving average crosses above its longer moving average, triggering a positive trend reversal. The third and final phase occurs when the stock maintains its upward momentum.

This kind of chart pattern is the opposite of a death cross, which is a technical event that suggests future bearish price movement.

Shares of CURI have been moving higher over the past four weeks, up 118.7%. Plus, the company is currently a #2 (Buy) on the Zacks Rank, suggesting that CURI could be poised for a breakout.

Once investors consider CURI's positive earnings outlook for the current quarter, the bullish case only solidifies. No earnings estimate has gone lower in the past two months compared to 1 revisions higher, and the Zacks Consensus Estimate has increased as well.

Investors should think about putting CURI on their watchlist given the ultra-important technical indicator and positive move in earnings estimates.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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