89bio's Stock Price Suffers with MACD Death Cross, Bollinger Bands Expand Downwards

According to the 15-minute chart for 89bio, there has been a significant development in the technical indicators. At 03/04/2025 15:15, the MACD (Moving Average Convergence Divergence) indicator has triggered a "Death Cross," which is a bearish signal indicating that the short-term moving average has crossed below the long-term moving average, suggesting a potential downtrend in the stock price. Furthermore, the Bollinger Bands, which are used to measure volatility, have been expanding downward, indicating that the stock price is becoming more volatile and may continue to fall. These indicators suggest that the current market trend is driven by selling pressure.

The 15-minute chart for 89bio (NASDAQ: ETFX) has shown a series of bearish signals from three prominent technical indicators: MACD, Bollinger Bands, and KDJ. These indicators suggest that the current market trend is driven by selling pressure, and investors should exercise caution.

At 03/04/2025 15:15, the MACD indicator, a trend-following momentum indicator, triggered a "Death Cross," which occurs when the short-term moving average crosses below the long-term moving average [1]. This bearish signal indicates a potential downtrend in the stock price. Furthermore, the Bollinger Bands, which measure a stock's volatility, have been expanding downward, indicating increased volatility and a potential continuation of the downward trend [2].

The Keltner Channel Indicator (KDJ), another momentum indicator, displayed a bearish signal in the form of a Death Cross at 02/07/2025 10:00 [3]. This occurs when the short-term moving average crosses below the long-term moving average, indicating a potential bearish trend.

While these indicators do not guarantee future price movements, they provide valuable insights into the current state of the stock and its potential direction. Investors should closely monitor these developments and consider adjusting their investment strategies accordingly.

References:

[1] A Invest. (2025, March 4). 89bio's 15-minute chart triggers MACD death cross bearish signal. Retrieved from https://www.ainvest.com/news/89bio-s-15-minute-chart-triggers-macd-death-cross-bearish-signal-detected-262320004d6739b39f243a23/

[2] A Invest. (2025, February 7). 89bio's 15-minute chart shows Bollinger Bands narrowing and KDJ death cross. Retrieved from https://www.ainvest.com/news/89bio-s-15min-chart-sees-bollinger-bands-narrowing-and-kdj-death-cross-25021000058652ec56c53eae/

[3] Investopedia. (n.d.). MACD. Retrieved from https://www.investopedia.com/terms/m/movingaverageconvergencedivergence.asp

[4] Investopedia. (n.d.). Bollinger Bands. Retrieved from https://www.investopedia.com/terms/b/bollingerbands.asp

[5] Investopedia. (n.d.). Keltner Channel Indicator (KCI). Retrieved from https://www.investopedia.com/terms/k/keltnerchannel.asp