RCM Technologies: Bollinger Bands Narrowing and KDJ Death Cross Signal

Based on the 15-minute chart of RCM Technologies, the Bollinger Bands are currently narrowing, and the KDJ indicator has triggered a death cross at 08/20/2025 12:30. This indicates a decrease in the magnitude of stock price fluctuations and a shift in momentum towards the downside, suggesting a potential further decline in stock price.

Based on the 15-minute chart of RCM Technologies, a significant shift in momentum has been observed, indicating a potential further decline in stock price. The Bollinger Bands are currently narrowing, signaling a decrease in the magnitude of stock price fluctuations [1]. Concurrently, the KDJ indicator has triggered a death cross on August 20, 2025, at 12:30, which typically signals a shift in momentum towards the downside [1].

The KDJ Death Cross, a combination of the Kijun Sen and Tenkan Sen lines crossing in a bearish formation, is a strong indication of a potential reversal in the stock's momentum. The Bearish Marubozu candlestick pattern, characterized by a long body with no upper or lower shadows, reinforces this bearish trend [1]. This pattern is often seen as a signal of a significant price movement in the opposite direction of the preceding trend.

Despite the strong financial performance reported by RCM Technologies in the second quarter of 2025, the stock has seen a decline of 4.74% in aftermarket trading, closing at $22.73. The company reported a significant EPS surprise of 109.52%, with revenue slightly surpassing forecasts and a consolidated gross profit of $22.3 million, marking an 11.4% year-over-year growth [2]. The healthcare and engineering segments showed notable growth, contributing to the company's overall robust performance.

However, the market reaction to these strong financial results has been mixed. While analysts maintain a "Strong Buy" consensus with price targets ranging from $30 to $32, the stock's recent performance suggests broader market volatility or specific investor concerns [2]. The stock remains within its 52-week range, with a high of $27.24 and a low of $13.18, indicating room for potential recovery.

Looking ahead, RCM Technologies anticipates continued growth, projecting low double-digit adjusted EBITDA increases for the remainder of 2025. The company expects to achieve its highest adjusted EBITDA in Q4 2025, driven by expansions in K-12 education, energy, and aerospace sectors [2]. Despite these positive projections, the current technical indicators suggest a cautious approach for investors.

References:
[1] https://www.ainvest.com/news/rcm-technologies-15min-chart-triggers-kdj-death-cross-bearish-marubozu-signal-2508/
[2] https://www.nasdaq.com/articles/rcm-technologies-rcmt-buy-wall-street-analysts-look-optimistic