If history is any guide, there may be trouble ahead for shares of Bank of Nova Scotia (NYSE:BNS). 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 Bank of Nova Scotia, which is trading around $66.83 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.
With that in mind, take a look at Bank of Nova Scotia's past and upcoming earnings expectations:
| Quarter | Q2 2022 | Q1 2022 | Q4 2021 | Q3 2021 | Q2 2021 |
|---|---|---|---|---|---|
| EPS Estimate | 1.52 | 1.6 | 1.51 | 1.32 | 1.32 |
| EPS Actual | 1.72 | 1.7 | 1.67 | 1.64 | 1.51 |
| Revenue Estimate | 6.14B | 6.17B | 6.18B | 5.46B | 5.46B |
| Revenue Actual | 6.27B | 6.36B | 6.12B | 6.31B | 6.14B |
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This article was generated by Benzinga's automated content engine and reviewed by an editor.
