(ALLY) – Death Cross threatens Ally Financial investors

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If the story is a guide, there may be issues ahead for the actions of Allied financial (NYSE: ALLY). A so called “death cross” has formed on its chart and, unsurprisingly, that could be bearish for the stock.

What there is to know: Many traders use moving average crossover systems to make their decisions.

When a short-term average price exceeds a longer-term average price, it may mean that the stock tends to rise. If the short-term average price goes below the long-term average price, it means the trend is down.

Why this is important: 50-day and 200-day simple moving averages are commonly used.

The cross of death occurs when the 50 days pass below the 200 days. It could mean that the long term trend is changing.

This just happened with Ally Financial, which is trading around $ 48.09 at time of publication.

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, such as price levels and company fundamentals and events.

For seasoned investors, this is just a sign that maybe it is time to start considering possible short positions.

With that in mind, take a look at Ally Financial’s past and future earnings expectations:

Trimester Q3 2021 Q2 2021 Q1 2021 Q4 2020
EPS estimate 1.95 1.46 1.15 1.05
Actual EPS 2.16 2.33 2.09 1.60
Income estimate 2.02B 1.87B 1.74B 1.67B
Actual turnover 2.11B 2.15B 1.93B 1.88B

Also consider this overview of Ally Financial analyst ratings:

notes

Are you using the Death Cross signal in your trading or investing? Share this article with a friend if you found it useful!

This article was generated by Benzinga’s automated content engine and edited by an editor.


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