Futu Holdings stock triggers RSI Overbought, Bollinger Bands Narrowing on 15min chart

Futu Holdings' 15-minute chart has triggered an RSI Overbought signal and Bollinger Bands Narrowing at 08/20/2025 16:00. This indicates that the stock price has experienced a rapid ascent, surpassing fundamental support levels, and the magnitude of price fluctuations has diminished.

Futu Holdings Ltd. (NASDAQ: FUTU) reported strong second-quarter 2025 earnings, demonstrating robust growth in revenue, profit, and client asset base. The company's stock traded at $182.67, up 2.24% during market hours, as investors reacted positively to the record results [1].

Key Financial Highlights

Revenue and Profit Performance:
- Total revenue reached HKD5.3 billion, up 7% year over year.
- Net income rose 113% year over year to HKD2.6 billion.
- Gross profit jumped 82% to HKD4.6 billion, supported by an 87.4% gross margin.
- Operating income rose 126% year over year to HKD3.3 billion, with an operating margin of 63%.
- Net income surged 113% year over year to HKD2.6 billion, with a net margin of 48.4%.

Trading and Client Growth:
- Total trading volume hit HKD3.59 trillion, up 121% year over year.
- Funded accounts rose 41% year over year to 2.9 million.
- International expansion remained a bright spot, with over half of accounts funded by clients outside of Hong Kong.
- Total client assets reached HKD974 billion, a 68% increase year over year.

Market Indicators and Technical Analysis

As of August 20, 2025, Futu Holdings' 15-minute chart triggered an RSI (Relative Strength Index) Overbought signal and Bollinger Bands Narrowing. This indicates that the stock price has experienced a rapid ascent, surpassing fundamental support levels, and the magnitude of price fluctuations has diminished [2].

Risks and Challenges

While the earnings were strong, certain risks remain:
- Hong Kong stock trading volume contracted 9% quarter over quarter, reflecting reduced activity in the technology sector.
- Customer acquisition showed signs of slowing, partly due to stricter onboarding for Mainland Chinese clients in Hong Kong.
- Rising selling and marketing costs could weigh on margins if growth moderates.

Performance Overview

Futu’s stock performance has far outpaced global benchmarks. As of August 21, 2025, year-to-date returns stood at 126.88%, with one-year gains of 213.16%. Over three years, FUTU shares are up 387.33%, while five-year returns reached 485.80%. In comparison, the MSCI World Index gained 11.51% year to date and 72.84% over five years [1].

Conclusion

Futu Holdings' Q2 2025 earnings confirm its strong position in online brokerage and wealth management. The company's international growth and record asset base continue to drive investor optimism despite potential risks and market volatility. As the stock remains overbought and Bollinger Bands narrow, investors should closely monitor the company's performance and the broader market conditions.

References

[1] https://coincentral.com/futu-holdings-ltd-futu-stock-record-q2-2025-earnings-with-strong-growth/
[2] https://www.taxtmi.com/news?id=37232