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Golden Cross

Technical Analysis

A golden cross is when the 50-day moving average crosses above the 200-day moving average.

Because the shorter average moves above the longer one, it shows recent prices running above the long-term trend and is conventionally read as strengthening upward momentum. Both averages are built from past prices, so the cross often comes after much of the move has already happened. In a sideways market the averages can cross back and forth and give misleading signals.

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