Haleon Shares Confirm a Death Cross at Tuesday’s Close

Haleon (LON: HLN), the FTSE 100 consumer healthcare group behind brands including Sensodyne, Panadol, Voltaren, Advil and Centrum, has recorded a Death Cross, with its 50-day simple moving average crossing below its 200-day simple moving average at Tuesday’s close.

The shares closed at 342.6p on Tuesday, having traded in a range of 342.4p to 346.6p during the session, a narrow band that left the stock little changed on the day.

A Death Cross occurs when a shorter-term moving average, here the 50-day, falls below a longer-term one, the 200-day, showing recent trading has weakened relative to the past year’s trend. It is a lagging signal, built from price action that has already happened, not a forecast of what comes next.

At Tuesday’s close the two averages sat close together, with the 50-day at 357.78p against a 200-day of 358.02p, a gap of just 0.24p.

The stock was little changed on the day, down just 0.06%, but it sits 14.9% below its 52-week high and 7.5% above its 52-week low, underlining how far the shares have fallen from their peak even as they hold above their low for the period. Haleon shares are down 6.7% so far this year. Turnover on Tuesday ran to 39,192,372 shares, 1.37 times the 20-session average of 28,547,487, a level of activity above the recent norm as the crossover was confirmed.

How unusual this is

There is no prior instance of this crossover on record for Haleon, making Tuesday’s confirmation the first Death Cross the data shows for the stock. The 50-day average has drifted below the 200-day line as the shares have traded down over recent months, taking the stock further from the highs it set earlier in the 52-week range.

The elevated relative volume of 1.37 times the recent average suggests the shift was accompanied by heavier-than-usual trading rather than passing unnoticed.

The two averages remain close together, with the 50-day average at 357.78p against a 200-day average of 358.02p, a gap of just 0.24p at Tuesday’s close.