A death cross is a shorter term moving average, typically the 50-day, cuts down through the slower average, traditionally the 200-day. False signals are common, therefore other technicals should be consulted.
British banking group Lloyds (LYG) generated a Death Cross last week with the 50-day exponential moving average slipping under the 200-day. The previous signal of the same type in September 2017 failed but then conditions were different, momentum, as depicted by the 14-day RSI, oversold with a value around 30. However, the present signal has a greater chance of fulfilment since momentum has room to unwind.
Tarquin’s academic background involved a bachelor’s degree in Ecology from Lancaster University in the U.K. That subject, coupled to a fascination with financial market pricing, fostered a unique and innovative approach to analyzing the market ecosystem, an entity he considers to be just a technological manifestation of nature. To harness ideas, he studied further, a Graduate Degree in Software Engineering at Kingston University, London, where he achieved a Distinction. He then achieved another distinction, in the U.K.’s Society of Technical Analysts Diploma, studied at the London School of Economics. Tarquin also runs Chartscholar.com a trading opportunity service for institutional and professional traders.