By the sound of it, a publicly traded security flashing the so-called “death cross” — a circumstance where a nearer-term moving average crosses below a longer-term average — would seem to be an uninviting opportunity. Nevertheless, for cloud-based contract center software company Five9 (FIVN), it could be the start of a comeback effort, at least in the short run. Therefore, speculators should keep close tabs on FIVN stock.
Let’s back up for a moment. On paper, Five9 offers a relevant and attractive vehicle for capital gains. Fundamentally, Five9 delivers what’s known as Contact Center as a Service (CCaS), allowing businesses to manage customer service operations through the cloud rather than on-premise infrastructure. Even before the COVID-19 outbreak, call centers were costly, rigid enterprises. Post-pandemic, the rise of remote operations forced a drastic rethink of this paradigm.
That’s where Five9 filled a critical gap. Thanks to its cloud-native platform, the tech specialist delivered solutions that were scalable, flexible and remote-ready — perfect for the post-COVID ecosystem. Notably, Future Market Insights reported that the CCaS sector last year reached a valuation of nearly $5.39 billion. Further, experts project that the segment would expand at a compound annual growth rate (CAGR) of 13.5% to 2034.
Still, results matter and the end product for investors has not been kind. Over the past 52 weeks, FIVN stock has cratered more than 52% of equity value. And while tech names have generally underperformed so far in 2025, FIVN really takes the cake, losing nearly 27% since the January opener.
Unfortunately, macroeconomic headwinds combined with a challenging geopolitical framework have contributed to investors rotating away from growth-oriented platforms to safe havens such as gold. Throw in intense competition in the CCaS segment and FIVN stock has looked less attractive.
Nevertheless, adventurous contrarians may have an opportunity on their hands.
A Death Cross for FIVN Stock May be a Green Light
While there’s no shortage of profitable trading prospects in the equities market, finding them is an entirely different matter. To help with the pursuit of alpha, investors should consider Barchart Screeners, a launching pad of trading ideas based on specific parameters.
One particular screener to monitor is the death cross. As stated earlier, this phenomenon is when a security’s 50 DMA crosses below the 200 DMA. This setup may indicate that the stock in question may be headed toward a longer-term downtrend or even a bear market. At first glance, the death cross doesn’t sound appetizing — until you realize that in some cases, it’s a contrarian indicator.
Now, we need to be careful as not all stocks that flash the death cross should be considered as buying opportunities. However, FIVN stock features a unique history. While it may have printed the dreaded pattern on Wednesday, its one-month response makes for a tempting proposition.
- On Sept. 3, 2025, FIVN stock saw the death cross flash at a price of $3.80 per share. A month later, the equity was only down 1.05% to $3.76.
- On Oct. 12, 2021, FIVN flashed the death cross at $145.96. A month later, the equity clocked in at $160.65, a 10.06% return.
- On Oct. 5, 2023, FIVN flashed the death cross at $61.58. A month later, the equity reached $64.24, a 4.32% return.
- On March 11, 2024, FIVN flashed the death cross $60.62. A month later, the equity hit $60.79, up 0.28%.
Statistically, FIVN stock enjoys a 75% contrarian success ratio a month after the death cross flashes. In contrast, the security flashed the life cross — when the 50 DMA rises above the 200 DMA — five times, with the equity rising only on two occasions one month later.
Playing the Numbers Game
If you’re interested in playing the numbers game, the next available options chain for FIVN stock is the one expiring April 17. Opportunistic speculators may consider selling a bull put spread, specifically the 30/27.50 put spread. This transaction involves selling the $30 put (at a bid of $140) and simultaneously buying the $27.50 put (at a $55 ask).
As a credit-based approach, the speculator starts from a cash influx position, receiving $85. So long as FIVN stock doesn’t drop below the breakeven threshold of $29.15, the spread will be profitable. The most that can be lost in the trade if FIVN plunges is $165.
It’s also possible for speculators to go directly bullish with a bull call spread. However, the one available trade — the 30/32.50 call spread — requires FIVN stock to reach $32.50 at expiration. While the security has a good chance of rising, a 9.4% move could be overly optimistic.
