Acme United's 15min chart shows RSI overbought, KDJ death cross, bearish marubozu.

Tuesday, Aug 12, 2025 2:17 pm ET2min read

According to the 15-minute chart for Acme United, several technical indicators have triggered bearish signals. The Relative Strength Index (RSI) has reached an overbought level, indicating that the stock price has risen too rapidly and is no longer supported by fundamental factors. The KDJ (Stochastic Oscillator) has also triggered a "Death Cross," which signifies a shift in momentum towards the downside and a potential decrease in stock price. Furthermore, the bearish Marubozu candlestick pattern at 08/12/2025 14:00 suggests that sellers have taken control of the market and that bearish momentum is likely to continue.

According to the 15-minute chart for Acme United, several technical indicators have triggered bearish signals. The Relative Strength Index (RSI) has reached an overbought level, indicating that the stock price has risen too rapidly and is no longer supported by fundamental factors. The KDJ (Stochastic Oscillator) has also triggered a "Death Cross," which signifies a shift in momentum towards the downside and a potential decrease in stock price. Furthermore, the bearish Marubozu candlestick pattern at 08/12/2025 14:00 suggests that sellers have taken control of the market and that bearish momentum is likely to continue.

The RSI, which measures the speed and change of price movements, has crossed above 70, indicating that the stock price has become overvalued. This is often a signal for a price correction or reversal. The KDJ Death Cross, formed when the K-line crosses below the J-line, is a bearish signal that suggests a potential trend reversal. The Marubozu candlestick pattern, characterized by a large body with no upper or lower wicks, indicates strong selling pressure and a potential continuation of the downtrend.

These bearish technical indicators are supported by the company's recent financial performance. While Acme United Corporation (ACU) has shown resilience with a strong financial health score of 6/6, its past performance score is only 2/6, indicating a mixed track record. The company's earnings are forecast to decline by an average of 15.7% per year for the next three years [1]. Additionally, the company's profit margins have been declining, dropping from 10.1% last year to 5.3% this year [1].

Significant insider selling over the past three months has also contributed to the bearish sentiment. The President sold US$72k worth of stock in June, followed by the Chairman of the Board & CEO selling US$264k worth of stock in March [1]. This trend of insider selling could indicate that key insiders are anticipating a potential downturn in the stock price.

Given these technical and fundamental indicators, investors should approach ACU with caution. The bearish momentum is likely to continue, and the stock price may experience further decline. However, it is essential to monitor the company's future earnings reports and any changes in the market sentiment to make informed investment decisions.

References:
[1] https://simplywall.st/stocks/us/commercial-services/nysemkt-acu/acme-united

Comments



Add a public comment...
No comments

No comments yet