If history is any guide, there may be trouble ahead for shares of Novo Nordisk (CSE:NOVOb) (NYSE:NVO). 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 Novo Nordisk, which is trading around $96.47 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 Novo Nordisk's past and upcoming earnings expectations:
EPS Estimate | 0.82 | 0.80 | 0.71 | 0.78 |
EPS Actual | 0.84 | 0.94 | 0.73 | 0.84 |
Revenue Estimate | 5.81B | 5.59B | 5.67B | 5.35B |
Revenue Actual | 5.91B | 6.34B | 5.90B | 5.64B |
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This article was generated by Benzinga's automated content engine and reviewed by an editor.
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