Majestic Ideal's 15min Chart Triggers SMA20 Turn Downward Trend

Majestic Ideal's 15-minute chart has triggered a downward trend in the short-term, as the 20-day simple moving average has turned downward, indicating a shift in market sentiment towards a bearish outlook. The seller's control of the market has led to downward pressure on the price in the short-term.

Majestic Ideal Holdings Ltd (MJID) experienced a significant downward trend in its 15-minute chart, as the 20-day simple moving average (SMA) turned downward, signaling a shift in market sentiment towards a bearish outlook [1]. This development has led to increased selling pressure on the stock, resulting in a decline in its price.

On Wednesday, August 20, 2025, MJID's stock price closed at $1.29, down by 7.19% from its previous close of $1.39 on Tuesday, August 19, 2025 [1]. The stock's volatility was high, with a 15.91% fluctuation between a day low of $1.25 and a day high of $1.45. Over the past 10 days, MJID's stock price has fallen in 7 out of 10 days, indicating a persistent downward trend. The stock's trading volume also decreased on Wednesday, which is typically a positive technical signal when accompanied by a price decline [1].

Technical indicators suggest that MJID is in a wide and falling trend, which could present a buying opportunity if the stock price breaks the lower trend floor at $1.23 [1]. However, the stock is expected to fall by 40.93% over the next three months, with a 90% probability of holding a price between $0.726 and $0.98 by the end of this period [1].

Moving averages provide further insight into the stock's trend. Both the short-term and long-term moving averages are signaling a sell, with the long-term average above the short-term average [1]. Additionally, the 3-month Moving Average Convergence Divergence (MACD) is indicating a sell signal, and there is no support from accumulated volume below the current price level [1].

The stock's high volatility and low liquidity pose significant risks for investors. The daily average volatility for the past week has been 16.99%, and the stock's trading range between high and low on Wednesday was $0.199, or 15.91% [1]. Due to these factors, the stock is considered to be "very high risk" [1].

For the upcoming trading day on Thursday, August 21, 2025, MJID is expected to open at $1.33 and move between $1.15 and $1.43, with a possible trading interval of +/-$0.283 (+/-24.63%) from the previous closing price [1]. However, the risk-reward ratio is not considered attractive due to the lack of support below the current price level and the presence of resistance from accumulated volume at $1.39 [1].

In conclusion, Majestic Ideal Holdings Ltd (MJID) faces significant downward pressure as the 20-day SMA turns bearish, indicating a shift in market sentiment. The stock's high volatility and low liquidity pose risks for investors, and the technical indicators suggest a continued downward trend. Therefore, investors should approach MJID with caution and consider the potential risks before making any investment decisions.

References:
[1] https://stockinvest.us/stock/MJID
[2] https://finance.yahoo.com/news/shoals-technologies-group-shls-just-133501094.html
[3] https://www.benzinga.com/insights/movers/25/08/47205978/12-consumer-discretionary-stocks-moving-in-tuesdays-pre-market-session