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Will Chart Analysts Notice Bad Omen on Avalara's Chart

If history is any guide, there may be trouble ahead for shares of Avalara (NYSE:AVLR). A so-called "death cross" has formed on its chart and, not surprisingly, this could be bearish for the stock.

Benzinga · 12/29/2021 09:56

If history is any guide, there may be trouble ahead for shares of Avalara (NYSE:AVLR). 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 Avalara, which is trading around $130.76 at publication time.

signals

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 Avalara's past and upcoming earnings expectations:

Quarter Q3 2021 Q2 2021 Q1 2021 Q4 2020
EPS Estimate -0.07 -0.09 -0.11 -0.06
EPS Actual -0.03 0.02 -0.08 0.09
Revenue Estimate 169.98M 153.10M 143.11M 133.39M
Revenue Actual 181.17M 169.07M 153.60M 144.76M

Do you use the Death Cross signal in your trading or investing? Share this article with a friend if you found it helpful!

This article was generated by Benzinga's automated content engine and reviewed by an editor.