Zepp Health's 15min chart triggers KDJ Death Cross, Bearish Marubozu

Based on the 15-minute chart of Zepp Health, the KDJ Death Cross and Bearish Marubozu indicators at 08/15/2025 15:30 suggest a shift in momentum towards the downside, with a potential for further price decreases. Sellers appear to be in control of the market, and it is likely that bearish momentum will continue.

Zepp Health Corporation (NYSE: ZEPP), previously known as Huami Corp., has been navigating through challenging times following its aggressive transition to an independent brand. Despite revenue drops and negative net income, the company's recent quarterly results indicate a promising turnaround. However, recent technical indicators on the 15-minute chart suggest caution for investors.

The 15-minute chart for Zepp Health has recently exhibited a narrowing of Bollinger Bands, a death cross in the KDJ indicator, and a bearish Marubozu pattern. This suggests that the magnitude of stock price fluctuations is decreasing, momentum is shifting towards the downside, and there is potential for further decreases. Sellers are currently in control of the market, and there is a likelihood of bearish momentum continuing [1].

In Q2 2025, Zepp Health reported a revenue of $59.4 million, marking a 54.2% increase from the previous quarter and a 46.2% increase from the same period last year. Although the net loss was still negative, it decreased by 28.6% compared to the previous quarter, with a gross margin of 36.2%. The company projects optimistic growth for Q3, with an expected increase of 70% to 79%. Considering execution risks, a more conservative estimate projects a 55% growth, resulting in a total revenue of $92.07 million [1].

The global market for wearable technology is one of the fastest-growing sectors, with a projected value of $365 billion by 2034, growing at a CAGR of over 300% [2]. Zepp Health is positioned to benefit from this growth by focusing on health and well-being, leveraging its investment in AI to create a unique ecosystem for users.

Despite the challenges, Zepp Health has optimized its balance sheet by reducing leverage by $68 million, freeing up significant capital. The company's revenue history shows a decline since 2020, but projections for 2025 and 2026 indicate a more conservative yet promising growth trajectory. The company's P/E and EV/EBITDA multiples are currently negative, but its P/S multiple of 1.40x suggests a modest target price increase for 2026.

The biggest long-term catalyst for Zepp Health is the growth of its Amazfit brand. As consumer perception of the brand improves, it will gain pricing power, allowing the company to transition to a premium brand and expand its subscription service offerings. Future partnerships with insurers and corporate health companies could further enhance its revenue streams.

In conclusion, while Zepp Health has faced significant challenges during its transition, its recent quarterly results and market projections indicate a promising turnaround. However, recent technical indicators suggest caution for investors. Investors should closely monitor the company's progress and consider the potential for long-term gains.

References:
[1] https://seekingalpha.com/article/4810795-zepp-health-stock-successful-strategic-shift-signal
[2] https://www.zionmarketresearch.com/press-release/wearable-technology-market