If history is any guide, there may be trouble ahead for shares of American Electric Power (NASDAQ:AEP). 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 American Electric Power, which is trading around $86.89 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 American Electric Power's past and upcoming earnings expectations:
| EPS Estimate | 1.19 | 1.19 | 0.93 | 1.46 |
| EPS Actual | 1.20 | 1.22 | 0.98 | 1.43 |
| Revenue Estimate | 4.07B | 4.56B | 3.73B | 4.36B |
| Revenue Actual | 4.60B | 4.60B | 4.10B | 4.60B |
Also consider this overview of American Electric Power analyst ratings:
Do you use the Death Cross signal in your trading or investing? Share this article with a friend if you found it helpful!
This article was generated by Benzinga's automated content engine and reviewed by an editor.
© 2022 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.