Why The Tesla ‘death Cross’ Shouldn’t Scare Off Investors

A bearish “death cross” pattern has appeared in the stock chart of Tesla Inc. on Thursday, but history shows it’s not as ominous as it seems.

A death cross is when the widely watched 50-day moving average, a short-term trend tracker, cuts below the closely watched 200-day moving average, considered by many to be the dividing line. split between a long-term uptrend and a downtrend.

Many technicians believe that the cross marks the spot where a short-term pullback turns into a longer-term downtrend.

Remember that dead crossovers are not always good market timing tools, as they are well signaled, but they can help put a stock’s recent performance in perspective. history.

Shares of Tesla
TSLA,
+ 8.57%
was up 8.4% in midday trading Thursday and was up 13.7% in two days. At an 11-month low to close Tuesday of $628.16, the stock has plummeted 49.9% since closing at a record $1,229.91 on Nov. 4, 2021.

The electric-car maker’s stock has been hit by supply chain issues and COVID-19-related lockdowns in China, as well as concerns that CEO Elon Musk could be fragmented. interested and may sell some of his shares as a result of his acquisition agreement to Twitter Inc.
TWTR,
+ 5.53%

That sell-off was strong enough and lasted long enough for the 50-day moving average to drop to $911.89 on Thursday from $914.40 on Wednesday, according to FactSet, to break below the level, according to FactSet. 200-day moving average, ticked up to $912.58 from $912.55.

The final cross of death came on July 9, 2021. Shares closed that day at $656.95 and have risen 8.7% since. That final cross of death came about seven weeks after it hit its last low, after a 36.2%, five-month drop.

Read More:   Yes, That Was Anderson .Paak Playing Drums For Eminem At The Super Bowl

Also read: Opinion: The Dow, S&P 500 and Nasdaq have now gone through a ‘death cross’ – here’s why this could revive them.

Thursday’s death cross is the 10th day in 10 years, while stocks have skyrocketed about 120 times in that time. Meanwhile, Apple Inc.
AAPL,
+ 2.35%
stocks have produced three death passes in 10 years and rallied about seven times in that time, and automaker General Motors Co.
GM,
+ 4.78%
produced nine signs of death and grew 68% in the same period.

S&P 500 Index
SPX,
+ 2.10%
produced five signs of death and has more than tripled in 10 years.

Claudia Assis contributed to this post.

Posts on here,Picture Ex sent you details about the topic “Why The Tesla ‘death Cross’ Shouldn’t Scare Off Investors – News Opener – NewsOpener❤️️”.Hope with useful information that the article “Why The Tesla ‘death Cross’ Shouldn’t Scare Off Investors – News Opener – NewsOpener” It will help readers to be more interested in “Why The Tesla ‘death Cross’ Shouldn’t Scare Off Investors – News Opener – NewsOpener [ ❤️️❤️️ ]”.

Posts “Why The Tesla ‘death Cross’ Shouldn’t Scare Off Investors – News Opener – NewsOpener” posted by on 2022-05-26 16:50:12. Thank you for reading the article at Pictureex.com

Back to top button