Acme United's 15-minute chart indicates RSI overbought and KDJ death cross.

Friday, Aug 8, 2025 1:48 pm ET1min read

Based on the 15-minute chart for Acme United, the Relative Strength Index (RSI) has reached an overbought level and the Keltner's J-Momentum Divergence (KDJ) has triggered a death cross at 08/08/2025 13:45. This suggests that the stock price has risen too quickly and is no longer supported by fundamental values, and momentum is shifting towards a downward trend, with potential for further decline.

Acme United Corporation (ACU), a leading supplier of cutting, measuring, first aid, and sharpening products, has seen significant fluctuations in its stock price recently. As of July 2, 2025, the company's stock is trading at $40.13, marking a 4.72% increase over the past three months [2]. However, a closer look at the 15-minute chart reveals concerning technical indicators that suggest a potential downward trend.

The Relative Strength Index (RSI) has reached an overbought level, indicating that the stock price has risen too quickly and is no longer supported by fundamental values. This is a common signal for a potential price correction or reversal [2]. Additionally, the Keltner's J-Momentum Divergence (KDJ) has triggered a death cross at 08/08/2025 13:45, which is a bearish signal suggesting that the stock price is likely to decline further [1].

These technical indicators, combined with recent earnings reports, provide a mixed picture for ACU's stock. While the company has reported strong past performance and has a robust financial health score of 6/6, there have been significant insider selling activities, with the President and other executives selling substantial shares over the past few months [2].

Furthermore, ACU's stock is trading at 58% below its estimated fair value, indicating that the market may be undervaluing the company's fundamentals [2]. The recent price rise, driven by improved investor sentiment, may have led to an overvaluation, as indicated by the RSI and KDJ signals.

Investors should closely monitor ACU's stock and consider the implications of these technical indicators. While the company's fundamentals remain strong, the recent price movements and technical signals suggest a potential downward trend. As always, it is crucial for investors to conduct thorough research and consider their risk tolerance before making investment decisions.

References:
[1] https://www.marketsmojo.com/news/stocks-in-action/why-is-acme-solar-hold-fallingrising-3360321
[2] https://simplywall.st/stocks/us/commercial-services/nysemkt-acu/acme-united

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