Franklin Covey's KDJ Death Cross and Bearish Marubozu Indicate Bearish Trend.

According to Franklin Covey's 15-minute chart, a KDJ Death Cross and Bearish Marubozu pattern has been observed at 14:00 on August 11, 2025. This indicates a shift in the momentum of the stock price towards the downside and a potential decrease in value. Sellers currently dominate the market, and it is likely that this bearish momentum will continue.

Franklin Covey's 15-minute chart has recently exhibited signs of a bearish trend, with technical indicators suggesting a continued downward momentum. According to the chart, a KDJ Death Cross and a Bearish Marubozu pattern were observed at 14:00 on August 11, 2025. These indicators signal a shift in the momentum of the stock price towards the downside, potentially leading to a decrease in value. The dominance of sellers in the market suggests that the bearish momentum is likely to persist.

Technical Analysis: Indicators of Bearish Pressure

The 15-minute chart of Franklin Covey's stock exhibits several technical indicators that point to a bearish trend:

- KDJ Death Cross: The KDJ indicator, a momentum oscillator, shows a cross below the signal line, indicating a potential reversal to the downside.
- Bearish Marubozu: This candlestick pattern, characterized by a long body and no shadows, signifies strong bearish momentum where the selling pressure is dominant.

Market Conditions and Analyst Sentiment

Despite these bearish indicators, analysts remain cautiously optimistic about Franklin Covey's long-term prospects. The company's strategic focus on leadership development solutions is seen as a positive factor. However, the immediate earnings pressure and macroeconomic uncertainties pose challenges.

Fundamentals and Earnings Expectations

Franklin Covey reported a net loss of $(1.4) million in Q3 FY2025, with revenue of $67.1 million, down from $73.4 million in Q3 FY2024. The company posted a net loss of $(1.4) million, or $(0.11) per share, compared to net income of $5.7 million in the prior year. Analysts remain bullish, with ratings such as "Buy" from Goldman Sachs and "Outperform" from Citigroup and Mizuho, reflecting confidence in the company's long-term growth potential.

Strategic Entry Points for Investors

High-beta investors should consider the following scenarios:

1. Oversold Rebound: If the RSI dips below 30 and the stock finds support at $65.83, this could signal a short-term buying opportunity.
2. Earnings Catalyst: Franklin Covey's Q1 2026 earnings report on August 7, 2026, could be a pivotal event. A beat on revenue or EPS could spark a rally.
3. Analyst Upgrades: Recent price targets reflect confidence in the company's long-term potential. A sustained move above $75.21 could validate the consensus.

Conclusion

Franklin Covey's bearish trend, as indicated by the 15-minute chart's technical indicators, suggests that the stock is likely to continue its downward momentum. However, the company's strong fundamentals and focus on organizational performance solutions may provide a buffer against potential market downturns. For disciplined investors, a strategic entry point could be a pullback to $65–$66, where the RSI and support levels align with a potential rebound. Position sizing is crucial, with a stop-loss at $62 to balance exposure with risk management.

References

[1] https://www.ainvest.com/news/franklin-covey-15min-chart-shows-rsi-overbought-bearish-marubozu-pattern-2508/