Anheuser-Busch InBev Stock Plunges 5.48% Amid Bearish Technical Breakdown

Candlestick Theory
The recent price action of Anheuser-Busch InBev (BUD) reveals critical patterns. The stock closed at $66.35 on July 28, 2025, after a sharp 5.48% decline—marking a pronounced bearish engulfing candle. This follows a series of small-bodied candles near the $70–71.5 resistance zone, suggesting repeated rejection and culminating in breakdown confirmation. Key support now rests at $66.21 (July 28 low), with resistance solidified near $70. The triple-top pattern near $71.5 earlier in June signals distribution, while failure to hold $68–69 indicates bearish momentum acceleration.
Moving Average Theory
BUD’s moving averages exhibit bearish alignment. The 50-day MA (near $68.3) and 100-day MA (~$67.8) have crossed below the 200-day MA ($65.5), forming a “death cross”—a classical long-term bearish signal. The latest close at $66.35 trades below all three key averages, confirming sustained downward pressure. Short-term rebounds have been capped by the 50-day MA since early July, reinforcing its role as dynamic resistance.
MACD & KDJ Indicators
MACD shows bearish momentum: the signal line (12,26,9) crossed below the MACD line in mid-July, with the histogram expanding negatively. KDJ metrics (K: 20, D: 30, J: 5) reflect oversold territory but lack reversal confirmation. The J-line’s dive below 10 signals extreme near-term pessimism; however, without bullish divergence, this may only suggest temporary consolidation rather than a durable low. Confluence with MACD’s bearish bias implies continued downside risk.
Bollinger Bands
Volatility expanded sharply during BUD’s July 28 sell-off, with price breaking below the lower Bollinger Band (20 SMA basis, ~$67.2). This deviation often precedes short-term mean reversion, but the band’s widening indicates momentum-driven downside. Prior contraction in late June foreshadowed this volatility surge. Price now trades near the lower band boundary, suggesting oversold conditions, yet the lack of a bullish reversal candle tempers recovery expectations.
Volume-Price Relationship
The breakdown was validated by surging volume (4.34 million shares vs. 1.45M prior session), confirming strong capitulation. Downward moves since early July consistently featured higher volume than rallies—signaling distribution. Supportive volume during bounces has been absent since late June, undermining recovery attempts. The volume spike at $66.21 suggests possible exhaustion, but sustainability requires follow-through buying interest.
Relative Strength Index (RSI)
The 14-day RSI (~38) sits in neutral territory, avoiding oversold (<30) conditions despite the plunge. Notably, it broke below 40 support—a level that held during prior pullbacks—intensifying bearish momentum. This divergence between price action (new low) and RSI (not oversold) suggests residual downward pressure. A rebound would need RSI clearance above 45–50 to signal stabilization.
Fibonacci Retracement
Drawing from the June peak ($71.48) to the July low ($66.21), key Fibonacci levels highlight potential support/resistance. The 38.2% retracement ($68.35) aligns with the 50-day MA and recent breakdown point, offering strong resistance. The 50% level ($68.83) converges with the psychological $69 barrier. Downside targets include the 78.6% retracement at $67.1. A close above $68.35 would be needed to invalidate the bearish structure.
Confluence & Divergence
Significant confluence exists at $68.3–68.8 (50-day MA + 38.2% Fib + prior support), making it a critical supply zone. Divergences appear between oversold KDJ readings and RSI’s neutral stance, suggesting conflicting signals about downside exhaustion. Volume-backed breakdowns and moving average alignment overwhelmingly favor bears. Probabilistically, BUD may stabilize near $66 support short-term but faces resistance-layered rebounds unless volume and volatility indicators shift.