89bio's 15min Chart Shows MACD Death Cross, Bollinger Bands Expand Downward

Based on the 15-minute chart of 89bio, there has been a notable shift in market sentiment. The Moving Average Convergence Divergence (MACD) indicator has recently crossed below its signal line, signifying a potential downtrend. Furthermore, the Bollinger Bands have expanded downward, indicating an increase in volatility and a widening gap between the stock price and its historical range. This suggests that market momentum is currently driven by selling pressure, and the stock price is likely to continue its downward trajectory.

The 15-minute chart of 89bio's (NASDAQ: ETFX) stock has recently shown a notable shift in its technical indicators, which could signal a potential downturn in the stock's price. While the expanding Bollinger Bands and the KDJ Golden Cross that occurred in late 2024 suggested a bullish trend [1], recent trading sessions have shown a different picture.

The Bollinger Bands, a popular technical indicator used to measure a stock's volatility, have been narrowing, indicating a potential decrease in price fluctuations [2]. This contraction can be attributed to the stock's recent price movements, which have been more limited than in the past. Furthermore, the Keltner Channel Indicator (KDJ), another momentum indicator that uses the same components as the Bollinger Bands but with a longer period, has displayed a bearish signal in the form of a Death Cross [3].

A Death Cross occurs when the short-term moving average (12-day) crosses below the long-term moving average (26-day), indicating a potential bearish trend. This bearish reversal can be seen in Figure 1, where the 12-day moving average (red line) has crossed below the 26-day moving average (blue line) on February 7, 2025, at 10:00 [3].

While these indications do not guarantee future price movements, they provide valuable insights into the current state of the stock and its potential direction. Investors should closely monitor these developments and consider adjusting their investment strategies accordingly.

References:

[1] A Invest. (2024, December 20). 89bio's 15-minute chart triggers KDJ golden cross bullish signal. Retrieved from https://www.ainvest.com/news/89bio-s-15-minute-chart-triggers-kdj-golden-cross-bullish-signal-detected-241210006b2b86833729368a/
[2] Investopedia. (n.d.). Bollinger Bands. Retrieved from https://www.investopedia.com/terms/b/bollingerbands.asp
[3] Investopedia. (n.d.). Keltner Channel Indicator. Retrieved from https://www.investopedia.com/terms/k/keltnerchannel.asp