If history is any guide, there may be trouble ahead for shares of Dynatrace (NYSE:DT). 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 Dynatrace, which is trading around $51.35 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 Dynatrace's past and upcoming earnings expectations:
| Quarter | Q2 2022 | Q1 2022 | Q4 2021 | Q3 2021 |
|---|---|---|---|---|
| EPS Estimate | 0.16 | 0.15 | 0.14 | 0.13 |
| EPS Actual | 0.18 | 0.16 | 0.15 | 0.17 |
| Revenue Estimate | 220.61M | 203.37M | 191.81M | 172.33M |
| Revenue Actual | 226.35M | 209.74M | 196.50M | 182.91M |
Also consider this overview of Dynatrace analyst ratings:
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This article was generated by Benzinga's automated content engine and reviewed by an editor.
