Shoals Technologies Triggers MACD Death Cross, Bollinger Bands Narrowing on 15min Chart

According to the 15-minute chart of Shoals Technologies, the MACD indicator has recently triggered a "death cross" signal, and the Bollinger Bands have begun to narrow. This suggests that the stock price may continue to decline, with a potentially smaller range of fluctuations.

Shoals Technologies Group, Inc. (NASDAQ: SHLS) has recently experienced a significant turnaround in its fortunes, with the company reporting a ~12% revenue growth in Q2 2025 after five consecutive quarters of year-over-year (YoY) declines. The company has been making a deliberate effort to shift investor focus towards its Battery Energy Storage Solutions (BESS) segment, which is seen as a promising growth area in the market Shoals Technologies: Well-Positioned To Be An AI Winner^[1].

The strategic pivot towards BESS is driven by the growing demand for energy storage solutions, particularly from data centers that power artificial intelligence (AI) applications. The global BESS industry is experiencing significant tailwinds, with the renewable energy industry leading the charge. According to McKinsey, the BESS capacity is expected to grow fivefold between 2023 and 2030 Shoals Technologies: Well-Positioned To Be An AI Winner^[1].

However, recent technical indicators suggest that the stock may continue to decline. The MACD indicator has triggered a "death cross" signal, and the Bollinger Bands have begun to narrow, indicating a potential decrease in stock price volatility Shoals Technologies Soars as Barclays Upgrade Ignites Battery Storage and Data Center Growth Optimism^[2]. This suggests that the stock price may continue to decline, with a potentially smaller range of fluctuations.

Investors should keep a close eye on the operating margin profile of Shoals, as the company has been facing margin compression due to promotional pricing and the growing revenue share of new products with lower gross margins Shoals Technologies: Well-Positioned To Be An AI Winner^[1]. Failure to see an improvement in this area may warrant material changes to the earnings model.

Despite the recent market challenges, Shoals Technologies remains well-positioned to benefit from the growth in the BESS market. The company's strategic decision to expand into this market, combined with its established relationships in the utility-scale solar sector, positions it to capitalize on the growing demand for energy storage solutions.