Caution Ahead: Visa, Macy's, Yum Brands, Target Stocks Near A Death Cross

As the stock market grapples with volatility, four major stocks—Visa Inc V, Macy’s Inc M, Yum! Brands Inc YUM, and Target Corp TGT are signaling a concerning technical pattern known as the Death Cross.

This ominous indicator typically signals potential downward momentum when a stock’s short-term moving average falls below its long-term moving average. With these key stocks hovering near this critical juncture, investors are on high alert. Here’s a look at the technical indicators and what they might mean for these companies.

Visa Stock – A Dip In The Bullish Momentum

Visa’s performance has shown strength over the past year with a 7.45% increase but faces a negative turn in 2024, down 0.32% year-to-date. The current technical signals paint a worrying picture for Visa as it nears a death cross.

Chart created using Benzinga Pro

• Current Price: $259.44
• 50-Day SMA: $268.40
• 200-Day SMA: $267.27

Visa’s share price is trading below all its short- and long-term moving averages, indicating a strongly bearish trend. The 8-day SMA falling below the 20-day and 50-day SMAs signifies that the stock is experiencing sustained selling pressure. With the 50-day SMA approaching the 200-day SMA, a death cross may soon confirm Visa’s potential bearish movement.

Macy’s Stock – A Turnaround On The Horizon?

Macy’s stock has taken a significant hit, with a 2.90% 1-year decline and a substantial 22.59% year-to-date drop. However, amid this bearish sentiment, Macy’s is showing some buying pressure, offering a glimmer of hope for bullish investors.

Chart created using Benzinga Pro

• Current Price: $15.58
• 50-Day SMA: $18.09
• 200-Day SMA: $17.99

Despite the current trend being strongly bearish, with Macy’s share price trading below its moving averages, the buying pressure could signal a potential shift. Still, the impending death cross indicates that the short-term challenges might persist before any meaningful recovery takes place. Investors should watch closely as the stock’s performance could swing either way depending on market sentiment.

Read Also: Not Lovin’ It: McDonald’s Stock Faces Bearish Headwinds Ahead Of Q2 Earnings

Yum! Brands Stock – Bucking The Trend

Yum! Brands stands apart from the others, with its stock trending positively, showing a 2.15% 1-year gain and a 5.61% increase year-to-date. The current technical outlook suggests that YUM is positioned for further gains, despite slight selling pressure.

Chart created using Benzinga Pro

• Current Price: $138.27
• 50-Day SMA: $133.02
• 200-Day SMA: $132.46

Unlike Visa and Macy’s, Yum Brands is exhibiting a bullish pattern, with its share price above the moving averages, signaling strong buying momentum. The 50-day SMA being above the 200-day SMA provides additional bullish confirmation. However, the stock’s approach towards a death cross raises caution, and investors should monitor if the trend continues to remain positive or if a reversal might occur.

Target Stock – Navigating A Bearish Path

Target has experienced a modest 2.58% increase over the past year, but the 5.4% decline year-to-date shows signs of weakness, with technical indicators suggesting a bearish outlook.

Chart created using Benzinga Pro

• Current Price: $135.40
• 50-Day SMA: $147.34
• 200-Day SMA: $146.52

Target’s current share price is below its moving averages, reflecting a strongly bearish sentiment. The 8-day and 20-day SMAs are well below the 50-day SMA, indicating strong selling pressure and the risk of a death cross formation. This bearish trajectory suggests that Target may face additional headwinds before it can find support or recovery.

What The Death Cross Means For Investors

The death cross is a widely-watched technical signal that often precedes sustained downward movement. While it’s not a definitive predictor of a stock’s future, it does highlight potential bearish momentum. Investors should approach these stocks with caution, keeping a close eye on market trends, economic indicators, and company-specific developments.

The looming death cross across these major stocks—Visa, Macy’s, Yum! Brands, and Target—raises important questions for investors. While some, like Yum! Brands, might show resilience, others face potential downturns that warrant careful scrutiny. As the markets continue to react to these technical signals, investors will need to stay vigilant and adapt to the evolving landscape, considering both short-term risks and long-term opportunities.

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