The toppy market has caused the majority of our technical models and scans to come up with bearish situations, but as always, there are bullish opportunities in any market.
Host Hotels and Resorts Inc (HST)
For those not familiar, a golden cross pattern happens when a stock’s 50-day moving average crosses above its 200-day moving average. This indicates a shift in the longer-term price trend into a bullish trend. For Host Hotels and Resorts, this happened on July 12.
In the case of this stock, the golden cross is happening just after a successful test of the technical support afforded by both of the moving averages that create the pattern, which the technicians love to see.
As if more was needed, HST stock is in the process of potentially breaking through the top of the tight trading range that has held since March. A breakout of the range will engage technical traders, as the stock will be set to likely break into a new bullish trend.
The last golden cross on Host Hotels and Resorts was January 2013, before the stock ran from $16.50 to $19.
Time Inc (TIME)
Time Inc share saw its own golden cross pattern form on July 11. Similar to Host Hotels and Resorts, the pattern formed as the stock was testing both the 50- and 200-day moving averages, which typically makes the pattern a little more attractive for us.
From a longer-term perspective, Time Inc has been trading in a technical bear market since June 2015 and remains in one now. The golden cross formation on this stock suggests that the intermediate-term bullish trend should strengthen.
That said, it is not likely that we will see the stock move above the $20 mark without a fierce battle, as this is the site of the stock’s 20-month moving average.
This still offers 20%-plus upside for the traders out there.
Live Nation Entertainment, Inc. (LYV)
Consumers are still spending money on concerts and live events, which is why Live Nation Entertainment’s stock prices have been improving. LYV shares formed a golden cross on July 15, at the same time that the stock was challenging to move into new year-to-date highs after bottoming in February.
The stock has become a little overbought on the most recent rally, as the RSI reading is now above 70, but to us this indicates that we are likely to see a chance in the short-term to grab these shares a little cheaper.
Any pullback should be contained by the triple-barreled support at around $23.75, as this is where the 20-, 50- and 200-day moving averages are current converging.
The last golden cross for Live Nation stock was in 2013 when shares were trading at $8 and more than doubled in less than a year.
As of this writing, the Johnson Research Group did not hold a position in any of the aforementioned securities.