LKQ stock price surges, triggering RSI overbought and KDJ death cross.

LKQ's 15-minute chart indicates that the Relative Strength Index (RSI) has reached overbought levels and the KDJ Death Cross occurred on August 8, 2025 at 15:30. This suggests that the stock price has risen too rapidly and is outpacing its fundamental value, potentially leading to a shift in momentum towards the downside and a subsequent decrease in stock price.

LKQ Corporation (LKQ), a global leader in automotive parts distribution, has seen its stock price rise significantly in recent months. However, technical indicators suggest that the stock may be overvalued and could experience a price correction. As of July 2, 2025, LKQ's 15-minute chart indicates that the Relative Strength Index (RSI) has reached overbought levels, signaling that the stock price has risen too rapidly and is outpacing its fundamental value. Additionally, the KDJ Death Cross occurred on August 8, 2025, at 15:30, which suggests a potential shift in momentum towards the downside.

The overbought RSI level and the KDJ Death Cross are technical indicators that often precede a price correction. These indicators suggest that the stock price has become unsustainably high and that a decrease in price is likely. Investors should be cautious and monitor the stock closely for any signs of a price correction.

LKQ's stock has experienced a significant decline recently, falling over 20% after the company revised its 2024 free cash flow expectations downwards. Despite this decline, the stock remains undervalued, offering a 7.2% to 9% free cash flow yield on its current market cap. The company's strong capital returns, resilient cash generation, and entrenched competitive position in the auto market suggest that the recent selloff may be overdone.

While the near-term outlook for LKQ reflects pressure from macroeconomic headwinds, the company's long-term prospects remain strong. Investors should consider the current valuation as an opportunity to buy a durable business at a discount. However, the potential for a price correction due to overbought conditions should be taken into account.

References:
[1] https://finance.yahoo.com/news/lkq-corporation-lkq-bull-case-200716313.html
[2] https://www.ainvest.com/news/rb-global-2025-q2-earnings-slight-earnings-dip-strong-revenue-growth-2508/