Weyco Group's 15-minute chart signals bearish signals with RSI overbought and KDJ death cross.

Friday, Aug 15, 2025 10:32 am ET2min read

Weyco Group's 15-minute chart exhibits a technical analysis warning, as the Relative Strength Index (RSI) has entered the overbought zone, the Keltner's Directional Indicator (KDJ) has formed a death cross, and the candlestick pattern is a bearish Marubozu at 08/15/2025 10:15. This suggests that the stock price has risen too quickly and exceeds the support level provided by its fundamentals. Furthermore, the momentum of the stock price has shifted towards the downside, indicating a potential for further decline. Sellers are currently in control of the market, and the bearish momentum is likely to persist.

Weyco Group's 15-minute chart has recently exhibited several technical analysis warnings, indicating potential market challenges. On August 15, 2025, at 10:15, the Relative Strength Index (RSI) entered the overbought zone, the Keltner's Directional Indicator (KDJ) formed a death cross, and a bearish Marubozu candlestick pattern was observed. These technical indicators suggest that the stock price has risen too quickly and exceeds the support level provided by its fundamentals. Additionally, the momentum of the stock price has shifted towards the downside, indicating a potential for further decline. Sellers are currently in control of the market, and the bearish momentum is likely to persist.

Weyco Group's recent performance has been robust, with a +1.85% gain in the latest trading session and an expected earnings growth of +75.23% for the full year [1]. However, these technical indicators suggest a potential slowdown or reversal in the near term. Investors should closely monitor these developments, as they may indicate a change in Weyco Group's stock price trajectory.

The MACD (Moving Average Convergence Divergence) Death Cross occurs when the MACD line crosses below the signal line, signaling a potential trend reversal. The KDJ (Kawase Stochastic) Death Cross, formed by the intersection of the K and D lines on the KDJ indicator, also signals a bearish trend. The Bearish Marubozu pattern, characterized by a long white candle with no shadows, suggests that sellers are in control of the market, with no visible resistance or support levels. This pattern usually confirms the continuation of the prevailing trend, in this case, a bearish trend [1].

Weyco Group is currently trading at a Forward P/E ratio of 18.12, which is below the industry average of 21.43, indicating a potential discount [1]. Additionally, the company's PEG ratio of 0.75 is favorable compared to the industry average of 1.58 [2]. Investors interested in the Technology Services sector should also consider other value opportunities, such as Kyndryl Holdings (KD), which has a higher forward P/E ratio and PEG ratio but a lower Zacks Rank [2].

However, Weyco Group's recent technical indicators and valuation metrics suggest a more favorable outlook for value investors. The company's recent earnings reports have shown revenue and margin deterioration, largely due to retailer caution and exposure to tariffs in China and India [2]. Despite these challenges, Weyco Group maintains a strong balance sheet with $85 million in net cash and no debt, which could reduce the EV/E ratio to about 8x [2].

In conclusion, while Weyco Group has shown strong fundamentals, the recent technical indicators signal caution. Investors should exercise due diligence and consider the broader market context before making investment decisions.

References:
[1] https://www.ainvest.com/news/weyco-group-kdj-death-cross-bearish-marubozu-signal-15min-chart-2508-7/
[2] https://seekingalpha.com/article/4813419-weyco-is-exposed-to-tariffs-and-earnings-are-halving-but-the-stock-has-barely-adjusted

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