Amer Sports Slumps 4.69% to $35.74 Amid Heavy Selling Pressure

Amer Sports recently experienced a significant decline, falling 4.69% to close at $35.74, marking its second consecutive down day with a cumulative 7.67% loss. This abrupt retreat occurred alongside elevated trading volume, suggesting strong selling pressure near the $37–$39 resistance zone. The price action reflects growing bearish sentiment as the stock challenges key technical levels established over the past quarter.
Candlestick Theory
Recent sessions exhibit bearish continuation patterns, particularly the two consecutive long red candles (August 18–19) closing near their lows. The August 19 candle’s narrow upper shadow ($37.33 high versus $35.74 close) underscores weak intraday recovery attempts. Key support is emerging near $35.00—aligned with the June 16 swing low and the 50% Fibonacci level—while resistance now converges at $37.00 (psychological barrier) and $38.50 (recent breakdown point from August 15). A close below $35.00 would likely intensify selling pressure.
Moving Average Theory
The 50-day SMA (∼$37.80) now caps the price, with the August 19 close ($35.74) decisively breaching this level. However, the stock remains above the ascending 100-day SMA (∼$33.50) and 200-day SMA (∼$28.00), preserving the broader uptrend. The bearish near-term posture is reinforced by the 50-day/100-day death cross that formed last week, as shorter-term momentum deteriorates despite longer-term averages still sloping upward.
MACD & KDJ Indicators
MACD (12,26,9) shows bearish momentum expansion, with the MACD line accelerating below its signal line and the histogram deepening into negative territory. Concurrently, KDJ registers oversold conditions (K: 20, D: 28, J: 4) following the two-day plunge. This divergence—where momentum (MACD) signals continued weakness while oscillator (KDJ) hints at exhaustion—suggests a potential near-term rebound may precede further downside. Traders should monitor for KDJ bullish crossovers to confirm this inflection.
Bollinger Bands
The August 19 close touched the lower Bollinger Band (∼$35.50, 20-day SMA at $37.40 ± 2σ), coinciding with a volatility expansion as bandwidth widened 15% over the prior three sessions. This signals institutional distribution near resistance. Historical reactions at this band (e.g., bounces on June 13 and July 31) imply $35.00–$35.50 offers immediate support, though a sustained break below may trigger additional volatility-driven selling.
Volume-Price Relationship
Distribution is validated by expanding volume on down days—August 19 volume (13.46M shares) doubled the 30-day average—while rallies lack conviction (e.g., August 13’s 4.32% gain occurred on merely average volume). This volume disparity confirms bearish dominance. A reversal would require high-volume consolidation above $36.50, which would absorb overhead supply and stabilize the technical structure.
Relative Strength Index (RSI)
The 14-day RSI (37.9) retreated from neutral territory (55.1 a week prior) but remains above oversold thresholds (30). While not yet signaling exhaustion, its trajectory indicates accelerating downside momentum. Caution is warranted as RSI tends to lag during sharp declines; a rebound above 40 would be the initial sign of stabilization.
Fibonacci Retracement
Using the $31.39 (May 19 low) to $38.85 (July 30 high) ascent, critical Fibonacci levels include:
- 38.2% = $36.00
- 50.0% = $35.12
- 61.8% = $34.24
Current price action is probing the 38.2–50% retracement zone ($35.12–$36.00). Confluence with the psychological $35.00 level strengthens this support cluster. A decisive breakdown below $35.12 would target $34.24 (61.8%), whereas holding $35.50 may catalyze a technical rebound toward $36.50 resistance.
Confluence and Divergence Observations
Notable confluence exists at $35.00–$35.50, combining Bollinger support, Fibonacci levels, and the psychological barrier. Divergence between bearish MACD momentum and oversold KDJ conditions suggests short-term consolidation or relief bounce near this zone, though volume and moving average alignments still favor downside resolution. A break below $34.24 would indicate a deeper correction toward the 100-day SMA ($33.50), while recovery above $37.00 is needed to neutralize the immediate bearish bias.