Ford Stocks Death Cross
When it comes to the stock market, there are concerns about a potential price recession as the Federal Reserve continues to raise interest rates. One indicator that could signal a longer downtrend is known as the “Death Cross.” This occurs when a short-term moving average crosses a longer-term moving average, indicating a bearish trend reversal or validation downwards.
Looking at some of the most traded stocks in the market, three of them have either already crossed long-term moving averages or are at risk of doing so. Ford stocks, for example, experienced a death cross on September 22nd with the 50-day moving average crossing the 200-day moving average. Currently trading at $12.13 per share, Ford had previously seen a golden cross on July 3rd but failed to sustain an uptrend.
The struggles with contract negotiations with the United Auto Workers (UAW) union may be contributing to Ford’s challenges.
Tesla Stocks Death Cross
Tesla stocks are also testing a death cross, this time with the 50-day moving average against the 100-day moving average. However, this crossing is considered less reliable compared to crossing against the 200-day moving average. With TSLA trading at $254.95 per share, it’s worth noting that a previous death cross in June was invalidated by a subsequent golden cross.
Furthermore, Tesla is expected to report a significant decline in margins and Earnings Per Share (EPS) in its Q3 reports, which could further impact its performance.
Marathon Stocks Death Cross
Marathon stocks recently performed a death cross within the 50-day and 100-day moving averages. Trading at $8.46 per share, this death cross occurred seven months after a reliable golden cross that signaled a short-term bull run. Marathon is a Bitcoin mining company, and its stocks are highly correlated to the performance of Bitcoin.
Bitcoin miners are facing challenges as the mining difficulty reaches all-time highs, adding to the struggles of the mining industry. Bloomberg Intelligence’s Senior Macro Strategist, Mike McGlone, believes that Bitcoin will be a leading indicator for a “great reset” that could have a negative impact on the stock market.
Hot Take: The Impact of Death Crosses on Stocks
As the Federal Reserve continues to raise interest rates, concerns about a price recession in the stock market have arisen. The presence of death crosses in certain stocks further fuels these concerns. Ford, Tesla, and Marathon are among the companies that have experienced or are at risk of experiencing death crosses in their stock charts.
While death crosses are not foolproof indicators, they suggest a potential bearish trend reversal or validation downwards. Factors such as contract negotiations, declining margins, and challenges in the cryptocurrency industry can further contribute to the downward pressure on these stocks.
Ultimately, it is important for investors to stay informed and monitor these developments closely to make well-informed decisions regarding their portfolios.
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