These stocks are close to forming the dreaded ‘death cross’ — including McDonald’s and Wells Fargo

by | Oct 4, 2023 | Financial

A handful of stocks are heading straight for the death cross. A death cross is a price chart pattern that forms when a stock’s 50-day moving average crosses below its 200-day moving average. It can be viewed as a sign that investors are bearish on a stock or that a stock’s momentum is weakening and will continue to decline, potentially making it a good time to pick up shares. The death cross is also used as a bear market predictor. CNBC Pro found just under 20 stocks, from financial giants to restaurant operators, that are close to forming a death cross. Take a look at the names below: One of them is McDonald’s , which has fallen 3% since the start of this year. Analysts surveyed by FactSet are confident in the stock, assigning an average rating of overweight and a price target that implies shares could rally more than 28% from Tuesday’s close. McDonald’s announced in late September that it will hike royalty fees for the first time in nearly three decades. Franchise royalty fees for U.S. restaurants will rise from 4% to 5% for operators opening new locations, the company said. Wells Fargo upgraded the fast-food chain earlier last month, saying the company is an “innovation engine firing on all cylinders.” MGM Resorts , which operates more than a dozen casi …

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