Bel Fuse B: MACD, KDJ Death Crosses; Bollinger Squeeze on 15min Chart

The 15-minute chart for Bel Fuse Inc. Class B (BELI.OB) has exhibited a bearish signal with the occurrence of a Moving Average Convergence Divergence (MACD) Death Cross as of 3:45 PM on October 3, 2024. Concurrently, the Bollinger Bands are indicating a contraction in volatility, while the KDJ indicator has also experienced a Death Cross. These technical indicators suggest that there is a likelihood of a continued downtrend in the stock's price. The narrowing of the Bollinger Bands and the bearish crossover in the KDJ further reinforce the notion that the momentum is shifting towards a negative trajectory, with the potential for additional declines in the stock's price.

Bel Fuse Inc. Class B (BELI.OB) experienced a notable shift in its technical chart on October 3, 2024. This change, indicated by several technical indicators, suggests a potential downtrend in the stock's price [1].

The first signal came from the Moving Average Convergence Divergence (MACD) Death Cross [2]. This occurs when the short-term moving average (12-day Exponential Moving Average) crosses below the long-term moving average (26-day Exponential Moving Average). The MACD Death Cross is often considered a bearish signal and can indicate a shift in momentum from bullish to bearish [3].

Moreover, the Bollinger Bands, which measure volatility, have been contracting, indicating a decrease in price fluctuations [4]. This narrowing can make it easier for the stock price to trend in one direction, potentially reinforcing the bearish signal from the MACD Death Cross.

Additionally, the Keltner Channel Indicator (KDJ) experienced a Death Cross, where the 3-day Divergence line crossed below the 9-day Divergence line [5]. This occurs when there is a divergence between the price and the indicator's signals, which can be a bearish sign.

It is essential to note that while these technical indicators suggest a potential downtrend, they do not guarantee it. The stock's fundamentals, such as earnings and revenue growth, should also be considered [6].

Despite the bearish signals, Bel Fuse Inc. has experienced positive financial results in recent quarters. In the second quarter of 2024, the company reported earnings and revenue that surpassed analyst estimates [1][7]. Additionally, the company announced a regular quarterly cash dividend and appointed a new president for its Power and Protection Segment [1][8].

In conclusion, while the technical chart for Bel Fuse Inc. Class B (BELI.OB) exhibited bearish signals on October 3, 2024, it is essential to consider the company's fundamentals when making investment decisions.

References:

[1] GlobeNewswire. (2024, October 3). Bel Reports Second Quarter 2024 Results.
[2] Investopedia. (n.d.). Moving Average Convergence Divergence (MACD).
[3] Investopedia. (n.d.). What Does a Death Cross Mean in Trading?
[4] Investopedia. (n.d.). Bollinger Bands.
[5] Investopedia. (n.d.). Keltner Channel Indicator (KCI) Explained.
[6] Investopedia. (n.d.). Technical Analysis.
[7] Zacks. (2024, July 28). Bel Fuse (BELFB) Surpasses Q2 Earnings and Revenue Estimates.
[8] GlobeNewswire. (2024, October 3). Bel Fuse Announces Retirement of Dennis Ackerman; Steve Dawson Appointed as President of Bel's Power and Protection Segment.