BDX Extends Slide With 3.63% Two-Day Drop As Technicals Signal Deepening Downtrend

Becton, Dickinson (BDX) declined 2.53% to $172.41 in the latest session, extending its two-day loss to 3.63% on above-average volume of 4.23 million shares. This bearish momentum appears to validate emerging technical deterioration observed across multiple indicators.
Candlestick Theory
The recent two-day plunge forms a bearish continuation pattern following a long upper shadow on August 4th ($179.53 high versus $178.90 close), signaling rejection near the psychological $180 resistance. The sharp breakdown below $175 established immediate resistance, while the $171-$172 range from June 2025 serves as critical support. Consecutive closes below the July 15th swing low ($177.09) confirm bearish structural damage.
Moving Average Theory
The 50-day SMA ($177.40) crossed below both the 100-day ($181.25) and 200-day SMA ($204.80) in late July, triggering a "death cross" indicative of entrenched bearish momentum. Current price sits 8.4% below the 50-day SMA, with all three moving averages aligned in downward slopes. This configuration confirms a major downtrend, with the 200-day SMA acting as formidable resistance near $205.
MACD & KDJ Indicators
MACD histogram readings (-2.80) remain at their most negative levels since May 2025, with sustained separation between the signal line and MACD confirming bearish acceleration. KDJ shows oversold conditions (K=18.2, D=22.4, J=9.8), but neither indicator exhibits bullish divergence despite seven consecutive down days. This suggests oversold pressure hasn't yet matured into reversal potential.
Bollinger Bands
The bandwidth expanded sharply to 12.8% (vs. 10.2% average), reflecting elevated volatility during the breakdown. Price now hugs the lower band ($170.30) – historically a precursor to consolidation when occurring alongside oversold oscillators. The 20-day SMA basis ($178.50) aligns with overhead resistance.
Volume-Price Relationship
Distribution signals emerged as August's decline occurred on 25% higher average volume versus July's recovery attempts. The August 1st rejection at $177.45 occurred on the year's highest volume (4.69M shares), confirming institutional selling. Volume divergence remains absent, lending credibility to the downtrend.
Relative Strength Index (RSI)
The 14-day RSI (27.6) entered oversold territory for the first time since May 2025. Historically, BDX has rebounded from sub-30 RSI readings within three sessions, though such bounces remain corrective within established downtrends. Sustained sub-30 readings beyond five sessions would indicate capitulation.
Fibonacci Retracement
Using the April 2024 high ($245.06) and May 2025 low ($167), key retracement levels emerge: 23.6% ($189.60), 38.2% ($200.10), and 61.8% ($216.70). Recent failures near the 23.6% level reinforce bearish bias. The 100% extension of the recent downswing targets $166, converging with the May low for significant psychological support.
Confluence & Divergence
Significant confluence exists around $170-$172, combining June 2025 swing lows, Bollinger Band support, and Fibonacci projections. Bearish consensus prevails across all indicators except oversold oscillators, which lack confirming divergence. Critical resistance now consolidates at $176.50 (July support breakpoint), which aligns with the 50-day SMA. A recovery above this zone is necessary to neutralize immediate bearish momentum. Probabilistically, the confluence of breakdowns beneath major moving averages, high-volume selling, and failed retracement attempts suggests continuation patterns towards $166-$167 support remain more likely than imminent reversal.