Saad Ullah
● According to Barchart, U.S. healthcare stocks have formed a Golden Cross for the first time in almost two years. The last time this happened, prices climbed 13% over the next eight months. This technical pattern occurs when the 50-day moving average crosses above the 200-day moving average, often signaling a shift from bearish to bullish momentum.
● The chart for the U.S. Healthcare iShares ETF (IYH) shows the 50-day line crossing above the 200-day line around $58—a textbook Golden Cross. While these formations have historically led to multi-month rallies, there are still risks. Short-term pullbacks can happen if economic conditions worsen. Rising healthcare costs, regulatory changes, and potential government budget cuts could also slow things down.
● When the last Golden Cross appeared in early 2024, IYH gained 13% over eight months. That sparked renewed interest in healthcare as a defensive sector with growth potential. Traders looking for stability during volatile markets might see this as a fresh entry point, though some investors may wait for stronger volume or broader sector momentum before jumping in.
● This bullish signal comes as global markets shift toward sectors with stable earnings and consistent performance. Healthcare stands out as one of the few industries blending defensive strength with innovation across biotech, pharmaceuticals, and health services.
Saad Ullah
