Facebook, Micron Technology and Other Tech Stocks With Recent Death Crosses

By Trey Thoelcke Updated Jan 11, 5:11PM EST · Published Sep 28, 8:45AM EDT

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Facebook, Micron Technology and Other Tech Stocks With Recent Death Crosses — © mikolajn / iStock

Golden crosses and death crosses are common signals in technical analysis and refer to the relationship between short-term and long-term moving averages. The golden cross typically is seen as a bullish sign, perhaps a stock that has or is about to break out. The death cross, on the other hand, can be a bearish sign, perhaps warning investors to get out of the way or signaling that it may be time short the stock.

Here are five top technology stocks that recently saw their 50-day moving average cross below the 200-day average, a death cross, and could be considered contrarian plays or short opportunities.

Cypress Semiconductor Corp. (NASDAQ: CY) saw its death cross this week, its second this year, though in July the short-term average was below the long-term one for only about 10 days. Cypress announced a collaboration with Alibaba earlier this month. Shares are almost 9% lower in the past three months, and analysts on average recommend buying shares, though the sentiment is weak.

Facebook Inc.’s (NASDAQ: FB) death cross occurred last week, and the gap between the two averages was about 3% of the share price on last look. Friction among the management team is among Facebook’s woes, but it is still a top pick at Baird. The shares are down about 14% from three months ago, and analysts recommend buying shares.

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Micron Technology Inc.’s (NASDAQ: MU) death cross came this past week, and the gap is up to a little more than a buck. It is one of the most shorted Nasdaq stocks but still a top Merrill Lynch pick. In the past 90 days, the shares are down 14% or so, and here too analysts recommend buying shares.

Nokia Corp. (NYSE: NOK) saw its death cross last week as well, as the 50-day moving average has retreated more than 9% since peaking in June. Analysts seem split on what to expect from Nokia, but its shares are only down fractionally from three months ago. The consensus recommendation is to hold shares.

Seagate Technology PLC (NASDAQ: STX) last week also saw a death cross, and the gap between the two averages has widened to more than 3% of the share price. Goldman Sachs recently warned about weakness at Seagate and its peers. The shares are down more than 17% in the past 90 days. Here too analysts recommend holding the shares.

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About the Author Trey Thoelcke →

Trey has been an editor and author at 24/7 Wall St. for more than a decade, where he has published thousands of articles analyzing corporate earnings, dividend stocks, short interest, insider buying, private equity, and market trends. His comprehensive coverage spans the full spectrum of financial markets, from blue-chip stalwarts to emerging growth companies.

Beyond 24/7 Wall St., Trey has created and edited financial content for Benzinga and AOL's BloggingStocks, contributing additional hundreds of articles to the investment community. He previously oversaw the 24/7 Climate Insights site, managing editorial operations and content strategy, and currently oversees and creates content for My Investing News.

Trey's editorial expertise extends across multiple publishing environments. He served as production editor at Dearborn Financial Publishing and development editor at Kaplan, where he helped shape financial education materials. Earlier in his career, he worked as a writer-producer at SVE. His freelance editing portfolio includes work for prestigious clients such as Sage Publications, Rand McNally, the Institute for Supply Management, the American Library Association, Eggplant Literary Productions, and Spiegel.

Outside of financial journalism, Trey writes fiction and has been an active member of the writing community for years, overseeing a long-running critique group and moderating workshop sessions at regional conventions. He lives with his family in an old house in the Midwest.