Becton Dickinson Drops 1.97% as Bearish Technicals Signal Extended Downtrend

Becton, Dickinson (BDX) declined 1.97% in the latest session to close at $175.33, marking two consecutive days of losses totaling 3.08%, with the price oscillating between $175.31 and $179.58 on elevated volume of 3.13 million shares. This downturn extends the dominant bearish trend observed over recent months, now explored through multiple technical lenses.
Candlestick Theory
The current daily chart reveals a bearish continuation pattern. The most recent candle’s long body and minimal upper wick reflect persistent selling pressure, confirming rejection near $179.58 resistance. A cluster of bearish engulfing patterns between $180-$181 in mid-July established formidable resistance, while the $172.50 level (tested repeatedly in early July) emerges as critical near-term support. A decisive close below $172.50 may trigger accelerated selling.
Moving Average Theory
All key moving averages exhibit bearish alignment: the 50-day SMA (≈$187) rests below the 100-day SMA (≈$195), which trails the 200-day SMA (≈$210). The current price trades 13% below the 50-day SMA, confirming a strong downtrend. The 50/200-day death cross formed in May and continues to suppress rallies, with any recovery facing layered resistance at $178.50 (recent breakdown point) and $181.60 (July high).
MACD & KDJ Indicators
The MACD (12,26,9) maintains a bearish trajectory below its signal line, with histogram bars expanding negatively since mid-June. Concurrently, the KDJ oscillator (14,3,3) shows the %K line at 18 and %D at 23 – both entrenched in oversold territory. While KDJ suggests potential exhaustion, the absence of bullish MACD convergence warns against premature reversal assumptions. Sustained values below 20 in KDJ may foreshadow extended capitulation.
Bollinger Bands
Bands have widened 15% over the past month, reflecting rising volatility during the descent. Price currently hugs the lower band (≈$172), an alignment typically signaling oversold conditions. However, the lack of bullish reversal candles near the band and the middle band’s steep downward slope ($182) reinforce bearish momentum. A close above the middle band is needed to signal stabilization.
Volume-Price Relationship
Distribution phases have consistently occurred on above-average volume, notably the 6.01M shares traded during the July 15 breakdown below $180. The latest session’s volume (3.13M) exceeds the 30-day average (2.88M), validating bearish conviction. Conversely, accumulation days like the June 1 rally on 3.27M shares lacked follow-through, underscoring weak demand.
Relative Strength Index (RSI)
The 14-day RSI (23.6) resides deep in oversold territory (<30), nearing extremes last observed during May’s selloff. Historically, readings below 25 have preceded short-term bounces (e.g., 4% relief rally in early June). However, RSI divergence is absent – new lows coincide with lower RSI troughs – suggesting primary bearish momentum remains intact.
Fibonacci Retracement
Using the high of $250.75 (January 29, 2025) and low of $165.15 (May 6, 2025), key retracement levels cluster at $193.23 (23.6%), $204.95 (38.2%), and $213.45 (50%). The repeated failure to breach $193 resistance reinforces its significance. Current price action below all Fibonacci thresholds confirms the entrenched downtrend, with no retracement level breached since April’s collapse.
Confluence & Divergence Observations
Critical confluence exists at $172.50, aligning Bollinger Band support, a swing-low consolidation zone, and the 1.618 Fibonacci extension level. Multiple oversold signals (RSI, KDJ, Bollinger) contrast with bearish MACD and moving average alignments, creating a tension typical of potential reversal zones. However, the absence of bullish reversal patterns and volume confirmation suggests downward momentum may persist until a catalyst emerges. Key resistance converges at $180-181.60, where the 20-day SMA, recent price rejection, and 10% volume spike all converge. Traders should monitor for either a breakdown confirmation below $172.50 or reversal signals at this technical inflection point.