1st Source's 15min Chart Displays KDJ Death Cross and Bearish Marubozu Pattern

At 08:15 on August 4, 2025, 1st Source's 15-minute chart exhibited a KDJ Death Cross and a Bearish Marubozu pattern, indicating a shift in the momentum of the stock price towards a downward trend. This suggests that the potential for further decreases in the stock price is high, with sellers dominating the market. The bearish momentum is likely to persist as a result of this pattern.

On August 4, 2025, at 08:15, 1st Source's (SRCE) 15-minute chart exhibited a KDJ Death Cross and a Bearish Marubozu pattern, indicating a significant shift in the momentum of the stock price towards a downward trend. This technical analysis suggests that the potential for further decreases in the stock price is high, with sellers currently dominating the market. The bearish momentum is likely to persist as a result of this pattern.

The KDJ Death Cross, generated by the KDJ indicator, occurs when the K line crosses below the D line, often seen as a bearish signal indicating a potential shift in the stock's momentum towards the downside [1]. The Bearish Marubozu, characterized by a single candle with no upper wick and a long lower wick, suggests that sellers are currently dominating the market and that bearish momentum is likely to continue [2].

These technical indicators provide insights into potential stock price movements, but investors should consider these signals in conjunction with fundamental analysis and broader market conditions. While 1st Source reported strong earnings per share (GAAP) of $1.51 in Q2 2025, beating analyst expectations, the bank also faced challenges with nonperforming assets and credit loss provision, driven by issues in the Specialty Finance auto and truck portfolio [1].

Investors should pay close attention to trends in nonperforming assets and credit provisioning, as these have begun to move upward in recent quarters. Despite the bank's strong capital base and liquidity position, the increasing credit costs and problem loans in certain specialty finance portfolios pose emerging risks. With no clear forward guidance offered by management, investors should monitor these developments closely.

Additionally, the options market has been predicting a potential spike in 1st Source's stock price, with the Sep 19, 2025 $40 Call having some of the highest implied volatility of all equity options today [2]. This high implied volatility suggests that investors in the underlying stock are expecting a significant move in one direction or the other, possibly due to an upcoming event. However, implied volatility is only one piece of the puzzle when putting together an options trading strategy.

Investors should monitor these technical indicators and fundamental data points to make informed investment decisions. Historical dividend data can provide a sense of stability and help predict future dividends. As of July 2, 2025, the estimated annual yields for 1st Source Corp are 2.54%, indicating a stable dividend payout [3].

References:
[1] https://www.nasdaq.com/articles/1st-source-posts-q2-profit-beat
[2] https://www.ainvest.com/news/options-market-predicting-spike-1st-source-stock
[3] https://www.nasdaq.com/articles/ex-dividend-reminder-metlife-1st-source-and-byline-bancorp