Smith-Midland's 15min chart MACD Death Cross, Bearish Marubozu triggered.

According to the 15-minute chart for Smith-Midland, the Moving Average Convergence Divergence (MACD) has triggered a "death cross," which indicates a bearish trend. Additionally, the chart exhibits a "bearish marubozu" pattern at 09:00 on September 3, 2025, suggesting that the stock price has the potential to continue declining. This indicates that sellers are currently in control of the market and that bearish momentum is likely to persist.

September 2, 2025

Smith-Midland's (NASDAQ: SMID) 15-minute chart has exhibited significant bearish signals, indicating a potential shift in momentum towards the downside. On September 2nd, 2025, at 9:45 AM, the chart showed a MACD Death Cross, KDJ Death Cross, and a Bearish Marubozu pattern, suggesting that the stock price could continue to decline [1].

The MACD Death Cross occurs when the MACD line crosses below the signal line, signaling a change from bullish to bearish momentum. The KDJ Death Cross, where the K-line crosses below the D-line, also indicates a shift from bullish to bearish momentum. The Bearish Marubozu pattern, characterized by a long white candle with no shadows, reinforces the bearish trend by indicating that sellers are in control [1].

Smith-Midland's recent financial performance has been impressive. The company reported strong 2Q25 results, driven primarily by the rental of highway barriers. The barrier rental business has shown high gross margins and impressive operating cost leverage, with flat operating expenses. The SoundWall product has been particularly successful in driving revenue growth [1].

However, there are concerns regarding the sustainability of the barrier rental business. The demand for Smith-Midland's services is primarily driven by government spending on road repairs, which is expected to continue due to infrastructure needs. Nevertheless, competition could increase as the business becomes more profitable, potentially leading to margin compression. The company has also indicated that the second half of 2025 may not be as strong as the first half due to non-recurring special projects [1].

Smith-Midland's stock is currently trading at a multiple of approximately 14.5x earnings, assuming the second half of 2025 is as good as the first half. This valuation is considered fair, given the company's high growth rates and expanding gross margins. However, the company's earnings yield could be improved with further gross margin leverage and flat operating expenses [1].

In conclusion, while Smith-Midland has shown impressive financial performance, the recent bearish signals suggest that investors should be cautious. The company's business model is promising, but the potential for increased competition and the uncertainty surrounding the second half of 2025 earnings warrant a wait-and-see approach. Investors should monitor the company's performance and the broader market conditions closely.

References:
[1] https://www.ainvest.com/news/smith-midland-15min-chart-signals-bearish-trend-macd-kdj-death-cross-2509/