Pagaya Technologies Ltd. (PGY) Just Flashed Golden Cross Signal: Do You Buy?

Pagaya Technologies Ltd. (PGY) reached a significant support level, and could be a good pick for investors from a technical perspective. Recently, PGY's 50-day simple moving average broke out above its 200-day moving average; this is known as a "golden cross."

A golden cross is a technical chart pattern that can signify a potential bullish breakout. It's formed from a crossover involving a security's short-term moving average breaking above a longer-term moving average, with the most common moving averages being the 50-day and the 200-day, since bigger time periods tend to form stronger breakouts.

Golden crosses have three key stages that investors look out for. It starts with a downtrend in a stock's price that eventually bottoms out, followed by the stock's shorter moving average crossing over its longer moving average and triggering a trend reversal. The final stage is when a stock continues the upward climb to higher prices.

A golden cross is the opposite of a death cross, another technical event that indicates bearish price movement may be on the horizon.

PGY has rallied 13.1% over the past four weeks, and the company is a #1 (Strong Buy) on the Zacks Rank at the moment. This combination indicates PGY could be poised for a breakout.

The bullish case only gets stronger once investors take into account PGY's positive earnings outlook for the current quarter. There have been 1 upward revision compared to none lower over the past 60 days, and the Zacks Consensus Estimate has moved up as well.

Given this move in earnings estimates and the positive technical factor, investors may want to keep their eye on PGY for more gains in the near future.

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This article originally published on Zacks Investment Research (zacks.com).

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