Oct

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The 50/200 Cross: ECL and TS

Pete @ 1:52 PM | | Start a Discussion 

A stock scan performed after the close on Tuesday for “the cross” found two stocks that might be instructive:

  1. Ecolab Inc. (NYSE:ECL)
  2. Tenaris S.A. (ADR) (NYSE:TS)

The 50/200 “Cross”

The thesis goes something like this: the up or “golden” cross (50-day MA moves above 200-day MA) is supposed to be bullish while the down or “death” cross (50-day MA moves below 200-day MA) portends to weakness.

What you should do with these ideas are up to you. While we personally don’t trade based on this criteria, it always good to watch to see if traders take action. Quite often, the best trades follow the failure of these setups. We use a well-defined process to evaluate buy and sell signals. You may wish to investigate these ideas further with the following questions in mind:

Ecolab Inc. (ECL)


Daily Chart with 50- and 200-day Moving Average


Daily Chart with InVivo Swing Trading Tools

ECL is in the personal & households products industry. Perhaps investors are looking to put money to work in something as simple as a company that sells products and services for the hospitality, foodservice, healthcare and industrial markets.

Tenaris S.A. (TS)


Daily Chart with 50- and 200-day Moving Average


Daily Chart with InVivo Swing Trading Tools

TS is in the construction-supplies & fixtures industry. This international company is showing us there something not right within the worldwide construction marketplace. Worldwide slowdown? Aren’t all the experts saying international companies are great investments? [September 8th Citigroup analyst Upgraded TS from SELL to BUY] ;)

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