Simpson Manufacturing's Technicals Suggest Bearish Trend Amid MACD, Bollinger Bands, KDJ Crossovers

Thursday, Aug 7, 2025 1:18 pm ET1min read

Simpson Manufacturing's 15-minute chart has exhibited a MACD Death Cross, Bollinger Bands Narrowing, KDJ Death Cross, and Bearish Marubozu at 08/07/2025 13:15. These indicators suggest that the stock price is poised to continue its downward trajectory, with a decreasing magnitude of fluctuations, a shift in momentum towards the downside, and a heightened likelihood of further decreases. Sellers appear to be in control of the market, and bearish momentum is likely to persist.

Simpson Manufacturing (SSD) has seen its stock price exhibit several bearish indicators in recent trading sessions. According to technical analysis, the 15-minute chart of SSD has shown a MACD Death Cross, Bollinger Bands Narrowing, KDJ Death Cross, and Bearish Marubozu at 08/07/2025 13:15 [1]. These indicators suggest that the stock price is poised to continue its downward trajectory, with a decreasing magnitude of fluctuations, a shift in momentum towards the downside, and a heightened likelihood of further decreases. Sellers appear to be in control of the market, and bearish momentum is likely to persist.

The company's earnings call on July 28, 2025, provided further insights into its financial performance and challenges. Simpson Manufacturing reported a 5.7% net sales increase in Q2 2025, driven by price realization and selective acquisitions, despite challenging end-market conditions and sluggish housing activity [2]. However, the company cited tariff headwinds as a significant factor impacting its gross margin outlook for fiscal 2025. Management reaffirmed its operating margin guidance for the year, indicating a cautious approach due to market volatility and softer demand in the second half of 2025.

Investors should also note that Simpson Manufacturing's stock has outperformed the broader Construction sector this year, with a year-to-date return of 8.2% compared to the sector's average gain of 3.8% [1]. However, the company's stock has underperformed its industry group, the Building Products - Miscellaneous, which has lost 0.8% year-to-date. This discrepancy could be attributed to the sector's overall performance and the specific challenges faced by Simpson Manufacturing.

In conclusion, Simpson Manufacturing's stock price has shown several bearish indicators, suggesting a potential downward trend. The company's earnings call highlighted the challenges posed by tariffs and market volatility, which may continue to impact its financial performance. Investors should closely monitor the company's progress and the broader economic conditions that could affect its stock price.

References:
[1] https://finance.yahoo.com/news/construction-stocks-lagging-simpson-manufacturing-134003570.html
[2] https://www.fool.com/earnings/call-transcripts/2025/08/07/simpson-ssd-q2-2025-earnings-call-transcript/

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