Tesla is just the latest to see the symbol of bearishness, which occurs when a company’s 50-day moving average crosses and drops below the 200-day average.
Biggest issue I’ve seen with technical analysis like this is that it’s more a measure of market sentiment, not fundamentals. You’re using the crowd as an indicator without any idea of whether the crowd knows anything you don’t or not.
So it’s a little more meaningful than dowsing rods and tarot cards, but only barely. Market sentiment can change on a whim.
The “death cross” market chart pattern refers to the drop of a short-term moving average—meaning the average of recent closing prices for a stock, stock index, commodity, or cryptocurrency over a set period of time—below a longer-term moving average. The most closely watched stock-market moving averages are the 50-day and the 200-day.
Nothing in that article even explained what a “death cross” is
Second paragraph?
As an example,
https://assets.finbold.com/uploads/2024/06/What-is-a-death-cross--1024x631.jpg
Basically it is a “technical analysis” thing. Which basically means divination based on “shapes stonk line make”.
Death cross scary shape when stonk line cross other line
Biggest issue I’ve seen with technical analysis like this is that it’s more a measure of market sentiment, not fundamentals. You’re using the crowd as an indicator without any idea of whether the crowd knows anything you don’t or not.
So it’s a little more meaningful than dowsing rods and tarot cards, but only barely. Market sentiment can change on a whim.
I found a definition.
The “death cross” market chart pattern refers to the drop of a short-term moving average—meaning the average of recent closing prices for a stock, stock index, commodity, or cryptocurrency over a set period of time—below a longer-term moving average. The most closely watched stock-market moving averages are the 50-day and the 200-day.
https://www.investopedia.com/terms/d/deathcross.asp
Investopedia is a great resource for things like this: https://www.investopedia.com/terms/d/deathcross.asp