Death Cross Threatens Exelon Investors – Exelon (NASDAQ:EXC)
If history is any guide, there may be trouble ahead for the actions of Exelon EXC. A so-called “death cross” has formed on its chart and, unsurprisingly, this could be bearish for the stock.
What there is to know: Many traders use moving average crossover systems to make their decisions.
When a short-term average price rises above a longer-term average price, it can mean that the stock is trending higher. If the short-term average price crosses below the long-term average price, it means the trend is down.
Why it matters: 50 and 200 day simple moving averages are commonly used.
The death cross occurs when the 50 days pass below the 200 days. This could mean that the long-term trend is changing.
This just happened with Exelon, which is trading around $39.72 at press time.
Remember: Seasoned investors don’t trade death crosses blindly.
Instead, they use it as a signal to start looking for short positions based on other factors, such as price levels and company fundamentals and events.
For seasoned investors, this is just a sign that it may be time to start considering possible short positions.
With that in mind, take a look at Exelon’s past and future earnings forecasts:
Also consider this overview of Exelon’s analyst ratings:
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This article was generated by Benzinga’s automated content engine and reviewed by an editor.