By its label alone, investors who are already jittery about the new economic paradigm may be tempted to avoid medical device firm Medtronic (MDT). As Barchart’s algorithm noted, MDT stock is one of the securities in danger of printing the dreaded death cross — a phenomenon where the 50-day moving average slips below the 200 DMA.
On paper, the death cross is a mathematical exercise, simply denoting the point where a shorter-term trendline intersects below a longer-term one. However, from a narrative perspective, this indicator is significant because it symbolizes broader demand loss. Investors may be losing confidence in the business; hence, the rush for the exits.
