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Thu. 25 Nov 2021, 2:18pm ETBenzinga
In: Markets, Movers, Trading Ideas

If history is any guide, there may be trouble ahead for shares of Deutsche Bank (NYSE:DB). 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 Deutsche Bank, which is trading around $12.82 at publication time.

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.

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This article was generated by Benzinga's automated content engine and reviewed by an editor.