Kontoor Brands's 15min Chart Triggers KDJ Death Cross, Bearish Marubozu

Kontoor Brands' 15-minute chart has triggered a KDJ Death Cross and a Bearish Marubozu on August 20, 2025 at 12:45. This indicates a shift in the momentum of the stock price towards a downward trend, with a potential for further decline. Sellers currently hold control of the market, and bearish momentum is likely to persist.

On August 20, 2025, at 12:45, Kontoor Brands (KTB) experienced a significant shift in its stock price momentum, with the appearance of a KDJ Death Cross and a Bearish Marubozu. These technical indicators suggest a potential downward trend, with sellers currently holding control of the market. This development follows the company's positive second-quarter results and an upward revision of its revenue guidance for the third quarter and full year 2025 [1].

The KDJ Death Cross, a technical indicator that combines the Moving Average Convergence Divergence (MACD) and the Relative Strength Index (RSI), signals a potential reversal in the stock's price trend. The Bearish Marubozu, characterized by a long candle with no wicks, further indicates a strong bearish sentiment, as it suggests that the stock price closed significantly lower than the opening price, with no significant price movement during the session.

These technical indicators suggest that despite the company's recent positive financial performance and revenue guidance, the stock price may face downward pressure. Investors should closely monitor the stock's price action and consider the potential impact of these indicators on the company's valuation.

In addition to the technical indicators, investors should also consider the company's fundamental performance and outlook. Kontoor Brands reported higher year-over-year sales and net income for the second quarter, with an increase in earnings per share from continuing operations. The company also raised its revenue guidance for both the third quarter and full year 2025, citing ongoing operational improvements and strong demand for its core brands [1].

However, the company's reliance on legacy brands and the potential risks from evolving consumer preferences away from denim and heritage brands remain significant concerns. The success of the Helly Hansen integration in North America is also a key short-term catalyst, and its performance will be crucial in determining the company's near-term prospects.

As the stock price faces potential downward pressure, investors should closely monitor the company's performance and consider the impact of these technical indicators on its valuation. The appearance of a KDJ Death Cross and a Bearish Marubozu suggests that the stock price may face further decline, and investors should be cautious when evaluating the company's investment narrative.

References:

[1] https://simplywall.st/stocks/us/consumer-durables/nyse-ktb/kontoor-brands/news/why-kontoor-brands-ktb-is-up-54-after-raising-2025-outlook-o