Acme United's 15min chart triggers Bollinger Bands Narrowing, KDJ Death Cross signal.

Acme United's 15-minute chart has exhibited a narrowing of Bollinger Bands, coupled with a KDJ Death Cross at 13:15 on 11th August 2025. This indicates a decline in the magnitude of stock price fluctuations and a shift in momentum towards the downside, suggesting a potential further decrease in the stock price.

Acme United Corporation (ACU) has shown significant technical indicators on its 15-minute chart that suggest a potential downward trend in its stock price. On August 11, 2025, at 13:15, the chart exhibited a narrowing of Bollinger Bands, coupled with a KDJ Death Cross. This combination of technical indicators indicates a decline in the magnitude of stock price fluctuations and a shift in momentum towards the downside, suggesting a potential further decrease in the stock price.

The Bollinger Bands, a technical analysis tool, consist of a simple moving average and two standard deviations above and below it. A narrowing of these bands indicates a decrease in volatility, which can be a precursor to a trend change. The KDJ Death Cross, formed when the K-line crosses below the J-line on the chart, is often seen as a bearish signal, indicating a potential trend reversal.

This bearish momentum is supported by the company's recent financial performance. While ACU has shown resilience with a strong financial health score of 6/6, its past performance score is only 2/6, indicating a mixed track record. The company's earnings are forecast to decline by an average of 15.7% per year for the next three years [1]. Additionally, the company's profit margins have been declining, dropping from 10.1% last year to 5.3% this year [1].

Significant insider selling over the past three months has also contributed to the bearish sentiment. The President sold US$72k worth of stock in June, followed by the Chairman of the Board & CEO selling US$264k worth of stock in March [1]. This trend of insider selling could indicate that key insiders are anticipating a potential downturn in the stock price.

The company's recent earnings reports have shown mixed results. In the second quarter of 2025, ACU's EPS exceeded analyst expectations, but revenues lagged behind [1]. This suggests that while the company is improving its profitability, it is still struggling with revenue growth.

Given these technical and fundamental indicators, investors should approach ACU with caution. The bearish momentum is likely to continue, and the stock price may experience further decline. However, it is essential to monitor the company's future earnings reports and any changes in the market sentiment to make informed investment decisions.

References:
[1] https://simplywall.st/stocks/us/commercial-services/nysemkt-acu/acme-united