Equity Bancshares (EQBK) Now Trades Above Golden Cross: Time to Buy?

From a technical perspective, Equity Bancshares, Inc. (EQBK) is looking like an interesting pick, as it just reached a key level of support. EQBK's 50-day simple moving average crossed above its 200-day simple moving average, which is known as a "golden cross" in the trading world.

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.

This kind of chart pattern is the opposite of a death cross, which is a technical event that suggests future bearish price movement.

Shares of EQBK have been moving higher over the past four weeks, up 17.3%. Plus, the company is currently a #1 (Strong Buy) on the Zacks Rank, suggesting that EQBK could be poised for a breakout.

The bullish case solidifies once investors consider EQBK's positive earnings outlook. For the current quarter, no earnings estimate has been cut compared to 2 revisions higher in the past 60 days. The Zacks Consensus Estimate has increased too.

Investors should think about putting EQBK on their watchlist given the ultra-important technical indicator and positive move in earnings estimates.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.