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3 Charts That Suggest Homebuilder Stocks Are Set to Drop

Casey Murphy

Moving average crossovers are one of the most common signals used by trend traders for triggering buy and sell decisions. Specifically, when the 50-day moving average closes below the 200-day moving average, it is known as a death cross and is used by many traders to mark the beginning of a long-term downtrend, and it often coincides with a significant shift in underlying fundamentals. One sector that has started to appear on the watch lists of the bears due to bearish moving average crossovers is the homebuilders.