wo Death Crosses on price charts for Australia’s two leading producers of uranium. What does this tell investors?
FNArena News – March 02 2010 , By Rudi Filapek-Vandyck A recent sector report by Canadian stockbrokers Haywood Securities has revealed that price charts for many international uranium stocks carry the so-called “Cross of Death”. This is when a shorter term trendline moves below the longer term trendline and stays beneath it.
From a technical-market momentum point of view, such occurrence indicates the underlying trend has now become negative (bearish), which was probably a give-away by the name widely used to describe the phenomenon.
FNArena subscribers can view the price chart for Paladin Energy (PDN) in Stock Analysis on the website. It clearly shows how the 60 day moving average is now firmly below the 200 day moving average – and has been ever since both crossed paths in late December.
A similar event took place for Rio Tinto ((RIO)) owned Energy Resources of Australia ((ERA)) – only a little bit later; in mid-January.
Two Death Crosses on price charts for Australia’s two leading producers of uranium. What does this tell investors?
Tags: business and costs