The cross of death hangs over Raymond James Financial Investors

If history is any guide, there may be trouble ahead for the actions of Raymond James Financial RJF. 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 Raymond James Financial, which is trading around $85.27 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 past and future earnings forecasts from Raymond James Financial:

Also consider this overview of analyst ratings from Raymond James Financial:

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