MetroCity Bankshares: RSI Overbought, Bollinger Bands Narrowing on 15min Chart

Based on the technical analysis of MetroCity Bankshares' 15-minute chart, the Relative Strength Index (RSI) has reached an overbought level, and the Bollinger Bands have narrowed significantly as of 08/12/2025 at 15:00. This indicates that the stock price has risen excessively and is now trading above its fundamental support level, resulting in a decrease in the magnitude of price fluctuations. As such, investors may want to exercise caution and reassess their investment strategy.

MetroCity Bankshares, Inc. (MCBS) has recently shown signs of market volatility, with technical indicators suggesting a cautious approach for investors. As of August 12, 2025, at 15:00, the Relative Strength Index (RSI) has reached an overbought level, indicating excessive buying pressure. Additionally, the Bollinger Bands have narrowed significantly, suggesting a decrease in the magnitude of price fluctuations [1].

The RSI, which measures the speed and change of price movements, is currently above 70, signaling that the stock price has risen excessively. This overbought condition typically precedes a correction or a period of consolidation. The narrowing of the Bollinger Bands, a measure of volatility, suggests that the price fluctuations are decreasing, which can sometimes lead to a more stable, but potentially lower, price level [1].

These technical indicators are important for investors to consider, especially when evaluating the stock's potential for further price appreciation. While the company's Form 10-Q report for the second quarter of 2025 showed stable profitability with total interest income of $54.0 million, net interest income of $32.2 million, and net income available to common shareholders of $16.8 million, the recent technical signals suggest a need for caution [2].

Investors should also be aware of the company's recent loan modifications and servicing activities, which include a significant loan modification for a commercial real estate loan totaling $12.2 million and servicing SBA and USDA loans with unpaid principal balances of $480.9 million as of June 30, 2025 [2]. These activities contribute to the company's diversified loan portfolio, which is a key factor in its overall financial health.

In conclusion, while MetroCity Bankshares has shown strong financial performance, the recent technical indicators suggest that investors should exercise caution and reassess their investment strategy. The overbought RSI and narrowing Bollinger Bands indicate a potential correction or period of consolidation, which could lead to a decrease in the stock price. Investors should closely monitor these indicators and the company's financial performance to make informed decisions.

References:
[1] https://www.ainvest.com/news/metrocity-bankshares-15min-chart-shows-macd-death-cross-bearish-marubozu-signal-2508/
[2] https://www.tradingview.com/news/tradingview:ce87a8e617b28:0-metrocity-bankshares-inc-sec-10-q-report/