The Chefs' Warehouse: 15min Chart Triggers RSI Oversold, KDJ Golden Cross

Based on our analysis of The Chefs' Warehouse's 15-minute chart, we have identified two significant technical indicators that suggest a potential uptrend in the stock price. Firstly, the Relative Strength Index (RSI) has reached oversold levels, indicating that the stock price has dropped rapidly and is currently trading below its fundamental support level. Secondly, the KDJ indicator has formed a golden cross at 08/14/2025 12:45, which is a bullish signal that suggests a shift in momentum towards the upside and a potential increase in the stock price.

July 02, 2025

Investors and financial professionals should closely monitor The Chefs' Warehouse's stock performance, as recent technical indicators suggest a potential uptrend. The Relative Strength Index (RSI) has reached oversold levels, indicating a rapid decline in the stock price below its fundamental support level. Additionally, the KDJ indicator has formed a golden cross, signaling a shift in momentum towards the upside.

The RSI is a momentum oscillator that measures the speed and change of price movements. When the RSI falls into the oversold zone, it typically indicates that the stock price has declined rapidly and may be undervalued. In the case of The Chefs' Warehouse, the RSI reaching oversold levels suggests that the stock price has dropped significantly and could be poised for a rebound [1].

The KDJ indicator, a trend-following momentum oscillator, consists of three lines: the K-line, the D-line, and the J-line. A golden cross occurs when the K-line crosses above the D-line, indicating a shift in momentum towards the upside. This bullish signal suggests that the stock price is likely to increase [2].

Investors should consider these technical indicators alongside the company's fundamentals and recent earnings reports. The Chefs' Warehouse reported strong second-quarter results, with higher sales and net income year-over-year, and raised its full-year 2025 guidance to US$4 billion–US$4.06 billion in net sales and US$964 million–US$979 million in gross profit [3]. This combination of strong current results and an improved outlook highlights both business momentum and management's increased confidence in operating conditions.

However, investors should also consider the persistent pressure from rising compensation and benefits costs that could still impact the company's performance. The Chefs' Warehouse's narrative projects $5.0 billion revenue and $121.9 million earnings by 2028, requiring a 7.8% yearly revenue growth and a $52.3 million earnings increase from $69.6 million today [4].

In conclusion, while technical indicators suggest a potential uptrend for The Chefs' Warehouse, investors should conduct thorough research and consider all available information before making any investment decisions. The combination of strong fundamentals and positive technical indicators may provide a compelling case for investing in The Chefs' Warehouse.

References:
[1] https://simplywall.st/stocks/us/consumer-retailing/nasdaq-chef/chefs-warehouse/news/how-strong-q2-results-and-higher-guidance-at-chefs-warehouse
[2] https://www.ainvest.com/news/paycom-software-rsi-oversold-kdj-golden-cross-15min-chart-2508/
[3] https://www.ainvest.com/news/3-insider-transactions-watch-ionq-hims-eli-lilly-transmedics-2508/
[4] https://simplywall.st/stocks/us/consumer-retailing/nasdaq-chef/chefs-warehouse/news/how-strong-q2-results-and-higher-guidance-at-chefs-warehouse