If history is any guide, there may be trouble ahead for shares of LyondellBasell Industries (NYSE:LYB). 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 LyondellBasell Industries, which is trading around $86.90 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 LyondellBasell Industries's past and upcoming earnings expectations:
EPS Estimate | 3.52 | 3.97 | 5.69 | 5.11 |
EPS Actual | 4 | 3.63 | 5.25 | 6.13 |
Revenue Estimate | 12.51B | 11.95B | 11.12B | 10.74B |
Revenue Actual | 13.16B | 12.83B | 12.70B | 11.56B |
Also consider this overview of LyondellBasell Industries analyst ratings:
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This article was generated by Benzinga's automated content engine and reviewed by an editor.
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