Scotts Miracle-Gro's 15min chart: Bollinger Bands Narrowing, KDJ Death Cross signal

Scotts Miracle-Gro's 15-minute chart is currently exhibiting a narrowing of Bollinger Bands, a technical indicator that suggests a decrease in the magnitude of stock price fluctuations. Additionally, the KDJ Death Cross, which occurred on August 20, 2025 at 10:00, indicates a shift in the momentum of the stock price towards the downside, with a potential for further decreases in value.

Scotts Miracle-Gro's 15-minute chart has exhibited a narrowing of Bollinger Bands, a technical indicator that suggests a decrease in the magnitude of stock price fluctuations. Additionally, the KDJ Death Cross, which occurred on August 20, 2025 at 10:00, indicates a shift in the momentum of the stock price towards the downside, with a potential for further decreases in value. These technical signals come at a time when Scotts Miracle-Gro's subsidiary Hawthorne Gardening Company is facing significant challenges in the cannabis market.

Hawthorne Gardening, established in 2014, has been a key driver of Scotts Miracle-Gro's growth, particularly in the cannabis industry. The company, originally known as Scotts Miracle-Gro, faced a decline in growth in the early 2010s due to reduced consumer spending on lawns and gardens following the 2007-09 recession. To reignite growth, Jim Hagedorn, Scotts Miracle-Gro's CEO, and his son Chris Hagedorn, who led Hawthorne, identified cannabis cultivation as a promising market [1].

The cannabis industry has seen significant growth, with sales exceeding $31 billion in 2021 and projected to reach nearly $33 billion in 2022. However, regulatory barriers, including banking roadblocks and limited listing options, have hindered the entry of public companies into the market. Despite these challenges, Hawthorne has positioned itself as a dominant supplier of materials and equipment for cannabis cultivators [1].

In recent years, Scotts Miracle-Gro's stock price has been boosted by the success of Hawthorne. The company's market capitalization more than doubled from March 2020 to early April 2021, with shares soaring from about $125 to over $250. However, the high didn't last. The cannabis market experienced a downturn in 2022, leading to a decrease in demand and an increase in unsmoked inventory. This resulted in a slump in revenue and losses for Hawthorne, which has become a significant drag on Scotts Miracle-Gro's overall performance [1].

The narrowing of Bollinger Bands and the KDJ Death Cross suggest that Scotts Miracle-Gro's stock price may continue to face downward pressure. Investors should closely monitor these technical indicators and the broader cannabis market for any signs of recovery or further declines.

References:
[1] https://www.wsj.com/business/marijuana-scotts-miracle-grow-hawthorne-gardening-477ba85f