The market just enjoyed a big relief rally and some stocks are on the verge of breaking out even higher, according to a bullish chart pattern. CNBC Pro used FactSet data to screen the S & P 500 for stocks that are about to form a so-called “golden cross,” in which their 50-day moving average breaks above the 200-day trend line. This has been a reliable bullish signal that historically indicates strong rallies on the horizon. Here is how we screened the stocks closing to forming such a pattern: 50DMA is approaching the 200DMA and within 3% 50DMA has not been on the other side of the 200DMA in the past month Software company Autodesk is one of the stocks on the list. Shares have gained 7% this month after the company reported first-quarter results in line with analysts’ expectations, according to FactSet. Dow-component Honeywell International is also on the brink of a “golden cross.” The industrial name has rallied nearly 6% in June. Capital One Financial could also be breaking out soon. The stock has rebounded after losing double-digits amid March’s banking crisis. Warren Buffett’s Berkshire Hathaway built a new stake in Capital One in the first quarter, worth more than $950 million. The world’s biggest asset manager BlackRock is also on the list. The firm took the first steps this week to launch a spot bitcoin exchange-traded fund. The stock is about flat on the year.
This story originally appeared on CNBC
