Fabrinet's 15min chart indicates KDJ death cross, bearish marubozu pattern.
ByAinvest
Friday, Sep 26, 2025 9:53 am ET1min read
FN--
The KDJ Death Cross, a crossover of the Kijun-sen and Tenkan-sen lines on the Keltner Jikei indicator, typically signals a change in trend direction. In this case, the crossover indicates a shift from a bullish to a bearish trend. The Bearish Marubozu, characterized by a large red candle with no wicks, further reinforces this bearish signal, suggesting a strong sell-off.
Fabrinet's performance over the past 15 years has been impressive, with an average annual return of 23.54% and a market capitalization of $13.61 billion [1]. However, the recent year-to-date (YTD) appreciation of 74.3% may have led to overvaluation, as the stock currently trades at 31.74X forward 12-month earnings, above the industry and sector averages [2].
The company's strong performance in optical communications and data center interconnect products has been a significant driver of its growth. However, Fabrinet's first-quarter fiscal 2026 guidance reflects potential constraints due to component shortages and margin pressure [2]. Additionally, the company's strategic push into manufacturing markets beyond optical communications has yielded substantial results, with non-optical communications revenues reaching $221 million in the fourth quarter of fiscal 2025 [3].
Given the technical indicators and the potential constraints in the near term, investors should exercise caution. Fabrinet's Zacks Rank #3 (Hold) suggests that investors should wait for a more favorable point to accumulate the stock [2].
Fabrinet's 15-minute chart has triggered a KDJ Death Cross and Bearish Marubozu at 09/26/2025 09:45, indicating a shift in momentum towards the downside and a potential decrease in stock price. Sellers currently dominate the market, and the bearish momentum is likely to persist.
Fabrinet (FN) has experienced a significant shift in market momentum following the appearance of a KDJ Death Cross and Bearish Marubozu on its 15-minute chart on September 26, 2025, at 09:45. These technical indicators suggest a potential downturn in the stock's price, with sellers currently dominating the market and bearish momentum likely to persist.The KDJ Death Cross, a crossover of the Kijun-sen and Tenkan-sen lines on the Keltner Jikei indicator, typically signals a change in trend direction. In this case, the crossover indicates a shift from a bullish to a bearish trend. The Bearish Marubozu, characterized by a large red candle with no wicks, further reinforces this bearish signal, suggesting a strong sell-off.
Fabrinet's performance over the past 15 years has been impressive, with an average annual return of 23.54% and a market capitalization of $13.61 billion [1]. However, the recent year-to-date (YTD) appreciation of 74.3% may have led to overvaluation, as the stock currently trades at 31.74X forward 12-month earnings, above the industry and sector averages [2].
The company's strong performance in optical communications and data center interconnect products has been a significant driver of its growth. However, Fabrinet's first-quarter fiscal 2026 guidance reflects potential constraints due to component shortages and margin pressure [2]. Additionally, the company's strategic push into manufacturing markets beyond optical communications has yielded substantial results, with non-optical communications revenues reaching $221 million in the fourth quarter of fiscal 2025 [3].
Given the technical indicators and the potential constraints in the near term, investors should exercise caution. Fabrinet's Zacks Rank #3 (Hold) suggests that investors should wait for a more favorable point to accumulate the stock [2].
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