Ominous Death Cross Forms on Costco Wholesale Chart

If history is any guide, there can be trouble when it comes to stocks Costco Wholesale COSTS. A so-called “death cross” has formed on its chart, which unsurprisingly could be bearish for the stock.

What you should know: Many traders use moving average crossover systems to make their decisions.

When a shorter-term average price exceeds a longer-term average price, it could mean that the stock is trending higher. If the short-term average price is lower than the long-term average price, it means the trend is lower.

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

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

That just happened to Costco Wholesale, which is trading at around $446.81 at the time of publication.

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

Instead, they use it as a signal to look for short positions based on other factors, such as price levels and company fundamentals and events.

For experienced investors, this is just a sign that it might be time to consider possible short positions.

With that in mind, take a look at Costco Wholesale‘s past and upcoming earnings expectations:

Also, check out this summary of Costco Wholesale analyst ratings:

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