DVA - DaVita investors brace for aftermath of Death Cross

The movement of DaVita (DVA -0.3%) shares has just indicated a Death Cross, a major bearish signal used by Technical Traders. Death Cross occurs when the short-term moving average of shares trends lower and crosses the long-term average. 50-day and 200-day moving averages are commonly used to identify the pattern.  As shown in the graph below, DaVita (NYSE:DVA) shares have just formed the pattern giving hints of a further downward movement. However, seasoned investors are not likely to interpret the sign in isolation.  In the case of DaVita (DVA), the momentum indicator Relative Strength Index (RSI) stands well within the range of 30 – 70, implying that the company shares have not yet entered the bear market territory as happens when the RSI reaches 70 or above.  However, since August 2019 – the last time DaVita (DVA) shares indicated a bullish signal in the form of a Golden Cross – the stock has surged

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DaVita investors brace for aftermath of Death Cross