Death Cross Chart Pattern

A death cross is a technical chart pattern that occurs when a security's short-term moving average crosses below its long-term moving average. This is often seen as a bearish signal for investors, indicating that the security's price has been in a downtrend. Traders use the death cross as a potential signal to sell their positions or consider shorting the security in anticipation of further declines. However, while the death cross can be a useful tool for timing trades, it is important to remember that no single indicator can predict market movements with certainty. It is always best to use multiple indicators and thorough analysis before making any investment decisions based on technical patterns like the death cross.

View Charts
Symbol Exchange Name MCAP Price Change PE Ratio Yield
BAK NYSE Braskem SA ADR 1.37B 3.43 -3.53 4.94 0.00
BBD NYSE Banco Bradesco Sa American Depositary Shares 43.26B 4.09 -1.69 9.98 0.05
AQN NYSE Algonquin Power & Utilities Corp. Common Shares 5.02B 6.53 0.62 95.00 0.04
ABR NYSE Arbor Realty Trust Inc 1.53B 7.80 2.23 9.39 0.18
LILA NASDAQ Liberty Latin America Ltd 1.62B 8.11 1.38 11.11 0.00
LILAK NASDAQ Liberty Latin America Ltd. - Class C Common Stock 1.65B 8.26 0.00 11.04 0.00
WU NYSE The Western Union Co 3.17B 9.98 -2.92 4.27 0.10
CARS NYSE Cars.com Inc 0.68B 11.36 -2.58 23.83 0.00
F NYSE Ford Motor Co 55.17B 13.83 0.11 9.86 0.05
AES NYSE The AES Corp 10.12B 14.21 -2.74 10.66 0.04
VOD NASDAQ Vodafone Group Plc - American Depositary Shares each representing ten Ordinary Shares 36.08B 15.49 2.49 44.05 0.03
FMC NYSE FMC Corp 1.95B 15.60 -1.30 8.23 0.13
PCG NYSE PG&E Corp 35.78B 16.28 0.31 14.88 0.01
CAG NYSE Conagra Brands Inc 8.57B 17.92 1.33 10.94 0.07
HPQ NYSE HP Inc 17.80B 19.39 2.76 7.12 0.06
BAX NYSE Baxter International Inc 10.23B 19.88 0.03 8.44 0.03
HOG NYSE Harley-Davidson Inc 2.39B 20.20 2.52 7.09 0.04
BWX AMEX SPDR Bloomberg International Treasury Bond ETF 1.79B 22.84 -0.66 0.00 0.95
IPG NYSE The Interpublic Group of Companies Inc 8.93B 24.57 -1.96 0.00 0.00
FL NYSE Foot Locker Inc 2.53B 26.49 0.23 0.00 0.00
AMRC NYSE Ameresco Inc 1.41B 26.63 -11.33 27.46 0.00
AGIO NASDAQ Agios Pharmaceuticals Inc 1.59B 27.10 0.60 3.03 0.00
CPB NYSE Campbell Soup Co 8.26B 27.71 -0.58 14.96 0.05
AMPH NASDAQ Amphastar Pharmaceuticals Inc 1.31B 28.61 -2.23 12.62 0.00
BEP NYSE Brookfield Renewable Partners L.P. 9.20B 30.08 -0.70 0.00 0.05
CMCSA NASDAQ Comcast Corp 110.31B 30.66 0.53 5.90 0.04
HAL NYSE Halliburton Co 27.76B 33.14 -1.15 22.86 0.02
HP NYSE Helmerich & Payne Inc 3.41B 33.51 2.72 7.66 0.03
MUR NYSE Murphy Oil Corp 4.89B 34.24 5.68 46.69 0.04
BTU NYSE Peabody Energy Corp 4.20B 34.58 -1.85 24.51 0.01
LKQ NASDAQ LKQ Corp 8.91B 34.80 0.58 12.63 0.04
MGM NYSE MGM Resorts International 9.56B 37.35 -1.87 44.99 0.00
BP NYSE BP p.l.c. Common Stock 96.44B 37.65 -0.62 1,823.04 0.05
CGNX NASDAQ Cognex Corp 6.48B 39.09 0.11 86.28 0.01
CMG NYSE Chipotle Mexican Grill Inc 51.30B 39.39 2.45 31.44 0.00
CSX NASDAQ CSX Corp 76.06B 40.90 0.45 26.43 0.01
SEE NYSE Sealed Air Corp 6.18B 41.95 0.20 15.59 0.02
DVN NYSE Devon Energy Corp 26.91B 43.39 5.55 10.37 0.02
OXY NYSE Occidental Petroleum Corp 45.59B 46.27 -0.84 33.45 0.02
AAP NYSE Advance Auto Parts Inc 3.32B 55.30 0.00 22.88 0.02
ASH NYSE Ashland Inc 2.74B 59.89 -2.99 15.06 0.03
MDLZ NASDAQ Mondelez International Inc 77.85B 60.73 1.19 33.12 0.03
AMWD NASDAQ American Woodmark Corp 0.90B 61.82 -3.53 13.85 0.00
EIX NYSE Edison International 23.92B 62.17 -0.13 9.05 0.05
FCX NYSE Freeport-McMoRan Inc 93.52B 65.13 2.36 40.82 0.01
PVH NYSE PVH Corp 3.01B 65.65 5.52 10.42 0.00
BWA NYSE BorgWarner Inc 13.69B 66.10 22.46 49.06 0.01
ARWR NASDAQ Arrowhead Pharmaceuticals Inc 9.53B 68.06 -5.66 38.99 0.00
HOLX NASDAQ Hologic Inc 16.77B 75.10 0.25 31.08 0.00
CCI NYSE Crown Castle Inc 37.48B 86.07 1.81 35.87 0.05
BC NYSE Brunswick Corp 5.60B 86.17 -0.64 20.53 0.02
ACLS NASDAQ Axcelis Technologies Inc 2.70B 88.07 -4.48 21.33 0.00
BCC NYSE Boise Cascade Co 3.28B 88.67 4.41 17.37 0.01
PFG NASDAQ Principal Financial Group Inc 19.77B 90.95 0.49 13.27 0.03
NEE NYSE NextEra Energy Inc 190.27B 91.36 0.59 28.01 0.02
ANF NYSE Abercrombie & Fitch Co 4.22B 91.92 0.49 8.85 0.00
AAXJ NASDAQ iShares MSCI All Country Asia ex Japan ETF 3.76B 99.69 0.19 0.00 3.75
TGT NYSE Target Corp 46.12B 101.85 -2.17 13.66 0.04
KMB NYSE Kimberly-Clark Corp 33.85B 101.97 -0.22 22.28 0.05
SJM NYSE JM Smucker Co 11.47B 107.46 -1.88 11.53 0.04
COP NYSE ConocoPhillips 131.71B 107.50 -1.11 17.45 0.03
BG NYSE Bunge Global SA 21.74B 112.41 -0.23 28.74 0.02
CABO NYSE Cable One Inc 0.64B 113.58 1.10 86.38 0.03
WYNN NASDAQ Wynn Resorts Ltd 11.87B 114.21 4.53 34.35 0.01
AWK NYSE American Water Works Co Inc 23.87B 122.30 -1.64 23.46 0.02
LSTR NASDAQ Landstar System Inc 4.68B 137.36 -15.61 43.01 0.01
GPC NYSE Genuine Parts Co 19.39B 139.38 0.29 25.41 0.03
STZ NYSE Constellation Brands Inc 26.85B 154.84 -1.19 25.49 0.03
ARW NYSE Arrow Electronics Inc 8.06B 157.81 1.15 14.24 0.00
EXPD NYSE Expeditors International of Washington Inc 21.93B 163.64 -0.85 22.89 0.01
ALGN NASDAQ Align Technology Inc 11.78B 164.12 -0.49 32.54 0.00
PEP NASDAQ PepsiCo Inc 228.19B 166.97 0.30 27.87 0.03
IQV NYSE IQVIA Holdings Inc 31.60B 186.33 -3.30 21.54 0.00
HSY NYSE The Hershey Co 41.33B 203.81 1.16 52.13 0.02
TXN NASDAQ Texas Instruments Inc 198.54B 218.77 -1.21 40.92 0.02
FSLR NASDAQ First Solar Inc 23.60B 219.92 -3.44 16.92 0.00
JNJ NYSE Johnson & Johnson 575.10B 238.64 -0.57 22.17 0.02
UNP NYSE Union Pacific Corp 154.34B 260.10 -0.64 21.85 0.02
ADBE NASDAQ Adobe Inc 114.82B 279.71 2.87 15.72 0.00
UNH NYSE UnitedHealth Group Inc 260.86B 287.98 1.27 14.82 0.03
HII NYSE Huntington Ingalls Industries Inc 15.68B 399.63 -1.53 26.43 0.01
LMT NYSE Lockheed Martin Corp 138.68B 602.76 -4.06 30.37 0.02

Introduction

A death cross is a technical chart pattern indicating the potential for a major selloff in an asset. It occurs when an asset's short-term moving average (such as the 50-day moving average) crosses below its long-term moving average (such as the 200-day moving average). This signal is used by traders and analysts to predict further downturns in the price of the asset.

What Causes a Death Cross?

A death cross occurs when selling pressure increases significantly, causing the asset's short-term moving average to fall below its long-term moving average. This typically happens when investors become bearish on the asset and start offloading their positions, leading to a selloff in the market.

Impact of a Death Cross

When a death cross occurs, it is seen as a bearish signal by traders, analysts, and investors. Many see it as an indication that the asset's price is likely to continue to decline in the near term. This can lead to further selling pressure, potentially pushing the price of the asset even lower.

Conclusion

Death crosses are a powerful technical indicator that can signal a major selloff in an asset. Traders and investors use this pattern to gauge market sentiment and make informed decisions about their positions. While not foolproof, a death cross can be a valuable tool in predicting potential downtrends in the market.

Frequently Asked Questions

Q: How accurate is the death cross indicator?

A: The accuracy of the death cross indicator varies depending on the asset and market conditions. While it can provide valuable insights into potential downturns, it is not always a guarantee of future price movements.

Q: Can a death cross be reversed?

A: Yes, a death cross can be reversed if the asset's price experiences a significant rebound, causing the short-term moving average to rise above the long-term moving average. This can signal a potential uptrend in the market.

Q: How should traders react to a death cross?

A: Traders should use the death cross as one of many tools in their analysis. It is important to consider other indicators and factors before making trading decisions based solely on this pattern.