NexPoint Real Estate Finance, Inc. (NREF) is drawing attention from technical analysts due to its recent ‘golden cross’ event, a bullish chart pattern that often signals a potential breakout. The golden cross occurs when a stock’s 50-day simple moving average surpasses its 200-day simple moving average, indicating a shift in momentum from bearish to bullish. This pattern has three distinct stages: a downtrend that bottoms out, a crossover of the shorter moving average above the longer one, and a sustained upward climb.
NREF’s golden cross comes on the heels of a 15.7% rally over the past four weeks, further strengthening the bullish case. Adding to the positive outlook, NREF currently boasts a #1 (Strong Buy) ranking on the Zacks Rank, suggesting strong fundamentals and a favorable environment for growth.
Furthermore, NREF’s earnings outlook for the current quarter has seen two upward revisions in the past 60 days, with no downward revisions. The Zacks Consensus Estimate has also moved upwards, indicating positive sentiment from analysts.
This confluence of technical and fundamental factors suggests that NREF could be poised for significant gains in the near future. Investors may want to keep a close eye on NREF as it navigates this potential bullish breakout.
