Cincinnati Financial Corporation (NASDAQ:CINF) – The cross of death hangs over Cincinnati’s financial investors


If history is any guide, there may be trouble ahead for the actions of Cincinnati Financial (NASDAQ: CINF). A so-called “death cross” has formed on its chart and, unsurprisingly, this 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 rises above a longer-term average price, it can mean that the stock is trending higher. If the short-term average price crosses below the long-term average price, it means the trend is down.

Why it matters: 50 and 200 day simple moving averages are commonly used.

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

This just happened with Cincinnati Financial, which is trading around $119.54 at press time.

Remember: Seasoned investors don’t trade death crosses blindly.

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 it may be time to start considering possible short positions.

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

Trimester Q3 2021 Q2 2021 Q1 2021 Q4 2020
EPS estimate 0.87 0.94 1.05 1.19
Actual EPS 1.28 1.79 1.37 1.61
Revenue estimate 1.76B 1.73B 1.68B 1.66B
Actual turnover 1.78B 2.29B 1.54B 2.69B

Do you use the Death Cross signal in your trading or investing? Share this article with a friend if you found it helpful!

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


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