Ominous Death Cross Forms On Novavax's Chart

If history is any guide, there may be trouble ahead for shares of Novavax NVAX. 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 Novavax, which is trading around $186.7167 at publication time.

signals

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 Novavax's past and upcoming earnings expectations:

Quarter Q2 2021 Q1 2021 Q4 2020 Q3 2020
EPS Estimate -3.63 -3.60 -1.49 1.73
EPS Actual -4.75 -3.05 -2.70 -3.21
Revenue Estimate 387.87M 233.90M 304.88M 230.56M
Revenue Actual 298.02M 447.23M 276.66M 157.02M

Do you use the Death Cross signal in your trading or investing? Share this article with a friend if you found it helpful!

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