Buying fundamentally strong stocks at every major dip is a solid strategy to create long-term wealth and generate outsized gains consistently. You can use technical indicators, such as the death cross signal to identify beaten-down stocks. In the simplest terms, the “death cross” is an indicator where the 50-day moving average of a stock crosses below its 200-day daily moving average, which suggests that the stock might be oversold.
Historical trends indicate that death-cross signals can present a viable opportunity for investors to buy stocks at a discount, despite the volatility surrounding the equity markets. Here are three beaten-down stocks from the Dow Jones Industrial Average ($DOWI) that fit the bill this October.
