Block Shares Slide 4.28% as Technical Indicators Signal Bearish Momentum Below Key $82.25 Resistance

Block shares experienced a notable decline of 4.28% in the most recent session, extending losses to 5.63% over two consecutive trading days. This accelerated selling pressure warrants a multi-dimensional technical examination using the historical price dataset.
Candlestick Theory
Recent sessions formed consecutive bearish candles with substantial real bodies, confirming selling momentum near the $82.25 resistance zone. This level capped multiple advance attempts in late August, establishing a technical ceiling. Support emerges near $73.47, where a bullish engulfing pattern on August 22 triggered a 6.79% single-day rally. The current retreat tests intermediate support at $75.18-$75.80, representing prior consolidation from mid-August.
Moving Average Theory
The 50-day moving average ($75.80) crossed below the 100-day ($77.10) in late August, signaling deteriorating intermediate momentum. Current price ($76.23) trades below both averages but maintains a 6.2% premium above the rising 200-day MA ($71.50). This configuration suggests neutral-long-term but negative intermediate bias, with the death cross between shorter averages warranting caution.
MACD & KDJ Indicators
MACD lines have been submerged under the zero line since mid-August, with the histogram showing expanding negative momentum. KDJ's %K (17) and %D (23) reside deeply in oversold territory, though both continue trending downward without bullish crossover signals. This momentum divergence - MACD establishing lower lows while price holds above the August low - hints at weakening downward pressure despite bearish confirmation.
Bollinger Bands
Contraction to a 2.8% bandwidth (from 4.5% in July) confirms declining volatility. Price recently touched the lower band at $75.18 before rebounding intraday, a typical oversold reaction. The multi-week squeeze pattern suggests pending directional resolution, though current position near range bottom implies higher probability of technical bounce than breakdown.
Volume-Price Relationship
Distribution days dominate the retreat (above-average volume on 8/29 and 9/2 down sessions), validating bearish conviction. However, the August 22 reversal surge occurred on the year's highest volume (12M shares), establishing a volume-supported support zone near $73.47. This creates conflict: recent selling is confirmed by volume, but critical support has stronger accumulation signals.
Relative Strength Index (RSI)
The 14-day RSI (39.6) has exited oversold territory without crossing 30, failing to generate a traditional bullish signal. This neutral reading masks underlying weakness as RSI momentum divergence persists: price made lower lows in August than May, but RSI's corresponding trough was shallower (29.3 vs. 27.1). Such positive divergence typically precedes reversals but remains unconfirmed.
Fibonacci Retracement
Measuring the primary rally from May's $46.53 low to August's $82.50 peak shows Block consolidating between the 23.6% ($73.42) and 38.2% ($69.60) retracements. Recent price action respects the 23.6% level, aligning with candlestick support. A breakdown would shift focus to the 50% retracement at $64.51, where volume-based support exists from June consolidation.
Confluence & Divergence
Notable confluence appears at $73.40-$73.50, where August's swing low, 23.6% Fibonacci, and high-volume reversal converge. Conversely, bearish divergence exists between MACD momentum and price action, while RSI divergence suggests weakening downside pressure. KDJ's oversold condition contradicts MACD's unabated bearish histogram, reflecting internal market indecision. The Bollinger squeeze and volume contraction near support favor potential upside resolution despite dominant bearish indicators, though sustained trade below $73.40 would invalidate this scenario.