Fabrinet's 15min chart indicates KDJ death cross, bearish marubozu pattern.

Fabrinet's 15-minute chart has triggered a KDJ Death Cross and a Bearish Marubozu, as indicated by the chart at 09/26/2025 13:30. This suggests that the momentum of the stock price is shifting towards the downside and has the potential to further decrease. Sellers are currently in control of the market, and it is likely that the bearish momentum will continue.

Fabrinet (FN) has experienced a significant 74.3% year-to-date (YTD) appreciation, outpacing both its industry peers and the broader sector. However, recent technical indicators suggest a potential shift in momentum. On September 26, 2025, at 13:30, Fabrinet's 15-minute chart triggered a KDJ Death Cross and a Bearish Marubozu, indicating a bearish trend Fabrinet Appreciates 74% YTD: Should You Buy, Sell, or Hold the Stock?^[1].

The KDJ Death Cross is a technical analysis indicator that occurs when the K line crosses below the D line, signaling a potential reversal in trend. The Bearish Marubozu, characterized by a single candlestick with no wicks, suggests that sellers are in control of the market. This combination of indicators suggests that the momentum of Fabrinet's stock price is shifting towards the downside, potentially leading to further decreases.

Investors should exercise caution given these technical signals. Fabrinet's recent performance has been driven by strong momentum in telecom and Data Center Interconnect (DCI) products, as well as the ramp of 1.6-terabit transceivers. However, the company faces near-term constraints due to shortages of 200-gigabit per lane externally modulated lasers, which are critical for both 800G and 1.6T transceiver production Fabrinet Appreciates 74% YTD: Should You Buy, Sell, or Hold the Stock?^[1].

Fabrinet's strategic push into manufacturing markets beyond optical communications has also been yielding substantial results. The company's automotive and industrial laser segments have emerged as significant growth drivers, contributing to a 41% year-over-year increase in non-optical communications revenues in the fourth quarter of fiscal 2025 Is FN's Diversification Beyond Optics Poised to Drive Further Upside?^[2]. Despite this diversification, Fabrinet faces stiff competition from peers like Jabil and Coherent, which are also expanding in adjacent markets.

From a valuation standpoint, Fabrinet's stock is currently trading at a forward 12-month Price/Sales ratio of 3.06X, compared to the industry's 2.08X. The stock has a Value Score of D, indicating that it may be overvalued Is FN's Diversification Beyond Optics Poised to Drive Further Upside?^[2]. Additionally, Fabrinet's earnings per share are expected to grow by 18.41% year-over-year for the first quarter of fiscal 2026, but near-term performance may be constrained by supply shortages Fabrinet Appreciates 74% YTD: Should You Buy, Sell, or Hold the Stock?^[1].

Given the bearish technical indicators and near-term constraints, investors may want to exercise caution with Fabrinet's stock. The company's long-term prospects remain strong, but the current market conditions suggest that it may be prudent to wait for a more favorable entry point.