Byline Bancorp, (BY): Bright Technical Outlook After Key Golden Cross

Byline Bancorp, Inc., reached a significant support and could be an attractive pick for technical investors. Recenty, BY’s simple 50-day moving average surpassed its 200-day moving mean; this is also known as a “golden crossing”.

The golden cross is a popular chart pattern among traders. It’s a sign that a bullish breakout may be imminent. This type of crossover occurs when the stock’s short term moving average crosses above a longer-term average. A golden cross typically involves the 50-day as well as the 200-day moving Averages. Larger time periods are more likely to result in stronger breakouts.

Three key stages are important to watch out for in golden crosses. It all starts with a downward trend in stock price, which eventually bottoms out. Next, the stock’s shorter moving average crosses over its longer average, and triggers a trend reversal. The stock then continues its upward climb to higher prices.

This chart pattern is different from a death crossing, which is a technical event that predicts future bearish prices.

After moving 11.7% higher in the past four weeks, BY could be poised for a breakout. The company is currently a #1 (Strong buy) Zacks Rank.

When investors consider BY’s positive quarter-end earnings outlook, the bullish case becomes stronger. Three upward revisions have occurred compared to none less in the past 60 days. The Zacks Consensus estimate has also moved up.

Moving Average Chart for BY

Moving Average Chart for Year

Investors may be interested in BY to gain more in the near future, given the recent increase in earnings estimates and positive technical factors.

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