Benzinga - If history is any guide, there may be trouble ahead for shares of Cenovus Energy (NYSE:CVE). A so-called "death cross" has formed on its chart and, not surprisingly, this could be bearish for the stock.
What To Know: Many traders use moving average crossover systems to make their decisions.
When a shorter-term average price crosses above a longer-term average price, it could mean the stock is trending higher. If the short-term average price crosses below the long-term average price, it means the trend is lower.
Why It's Important: The 50-day and the 200-day simple moving averages are commonly used.
The death cross occurs when the 50-day moves below the 200-day. This could mean the long-term trend is changing.
That just happened with Cenovus Energy, which is trading around $19.27 at publication time.
Remember: Seasoned investors don't blindly trade Death Crosses.
Instead, they use it as a signal to start looking for short positions based on other factors, like price levels and company fundamentals & events.
For seasoned investors, this is just a sign that it might be time to start considering possible short positions.
With that in mind, take a look at Cenovus Energy's past and upcoming earnings expectations:
QuarterQ3 2022Q2 2022Q1 2022Q4 2021EPS Estimate | 0.89 | 0.82 | 0.56 | 0.39 |
EPS Actual | 0.62 | 0.93 | 0.62 | 0.45 |
Revenue Estimate | 12.44B | 11.58B | 11.83B | 11.25B |
Revenue Actual | 13.42B | 15.02B | 12.78B | 10.89B |
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