20-Year Pro Trader Reveals His "MoneyLine"
Ditch your indicators and use the "MoneyLine". A simple line tells you when to buy and sell without the guesswork. It’s a line on a chart that’s helped Nic Chahine win 83% of his options buys. Here's how he does it.
If history is any guide, there may be trouble ahead for shares of GLOBALFOUNDRIES (NASDAQ:GFS). 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 GLOBALFOUNDRIES, which is trading around $63.07 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 GLOBALFOUNDRIES's past and upcoming earnings expectations:
Quarter | Q1 2023 | Q4 2022 | Q3 2022 | Q2 2022 |
---|---|---|---|---|
EPS Estimate | 0.49 | 1.18 | 0.62 | 0.45 |
EPS Actual | 0.52 | 1.44 | 0.67 | 0.58 |
Revenue Estimate | 1.83B | 2.08B | 2.05B | 1.97B |
Revenue Actual | 1.84B | 2.10B | 2.07B | 1.99B |
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.
20-Year Pro Trader Reveals His "MoneyLine"
Ditch your indicators and use the "MoneyLine". A simple line tells you when to buy and sell without the guesswork. It’s a line on a chart that’s helped Nic Chahine win 83% of his options buys. Here's how he does it.
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