Three stocks are on the verge of taking off, according to a chart pattern closely watched by technical analysts. The phenomenon, known as a “golden cross,” occurs when a stock’s 50-day moving average share price rises above the longer-term 200-day moving average. Wall Street regards the pattern as a bullish sign of a potential rally to come. It comes at a time when the S & P 500 has rallied by nearly 10% from a recent low, and charting analysts expect to see the index rise further . Technical analysis is often used to identify an entry point for stocks. To be sure, the process uses historical data to chart future outcomes, which are not guaranteed. The stocks below are about to signal the golden cross pattern. Historically, the above stocks have risen by 6% on average every time such a pattern has occurred in the 30 days after the golden cross pattern is signaled, according to CNBC Pro’s technical analysis of stock market data. Canadian stock Descartes Systems rose 7% on average in the month after the golden cross. Similarly, Stryker Corporation , a medical device manufacturer, has risen 4.4% on average after such a pattern emerged in its price action. CNBC Pro’s data analysis reveals that the stock has exhibited the chart pattern four times over the past decade. Deutsche Boerse , Germany’s largest stock exchange operator, rose by 6.5% in the month after the pattern formation. The stock’s price action has shown the golden cross forming seven times over the past decade. Analysts at investment banks and stockbrokers analyze stocks on fundamentals, such as profitability, debt, growth potential, etc. Here’s what they have to say about the above stocks: Descartes Systems Group The Canadian logistics technology company, which also has a dual-listing on the Nasdaq, is expected to report its third-quarter results on Dec. 5. Analysts at Scotiabank expect it to deliver 9% organic growth in services and a 43% improvement in adjusted profit margin profile. “Organic results over at least the past two years have tracked notably higher than management’s targeted goal of ‘mid-single-digits’, as the company has been benefiting from industry tailwinds and pockets of strength in its business such as e-commerce, trade intelligence, and visibility,” said Scotiabank analysts Kevin Krishnaratne and David Weiss in a note to clients on Nov. 27. They expect shares to rise to $86 over the next 12 months. Stryker Corp Analysts at RBC are bullish about the stock after the company laid out its long-term financial and strategic plans at its most recent investor day meeting. “We have come away more positive on SYK’s innovation engine, and best-in-class operational execution. We reiterate our Outperform rating and $315 price target,” RBC analyst Shagun Singh said in a note to clients on Nov. 8. Deutsche Boerse The German stock exchange operator also unveiled its three-year plan on Nov. 8. Analysts at UBS investment bank welcomed the company’s targets but maintained their “neutral” rating with a 185 euros price target. “We view Horizon 2026 positively and expect the 2026 targets and buyback announcement to move consensus EPS up in the low single digits,” said analysts Michael Werner and Hayley Tam in a note to clients. Methodology The stocks analyzed were limited to MSCI World Index constituents — around 1,500 stocks from developed markets worldwide. The companies are some of the largest firms in their respective markets, and stocks often tend to have large amounts of liquidity. The stocks highlighted above are within 2% of seeing their moving averages cross. Simple moving averages were used to calculate the 50-day and 200-day share price averages. Equities from Finland, Denmark, Norway, Sweden and Singapore were excluded due to lack of market data. CNBC Pro used the closest trading day 30 days after a pattern was identified to calculate returns in case the thirtieth day was not a trading day.
These global stocks are forming the bullish ‘golden cross’ signal
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