Celestica Slips 0.10% After 500% Rally Tests Key Support At $239

Celestica (CLS) closed at $244.08 on September 9, 2025, reflecting a minor decline of 0.10% in a session that tested support near $239.02 after reaching an intraday high of $250.15. This price action concludes a period of exceptional volatility, with the stock rallying approximately 500% over the past year from sub-$50 levels to its all-time peak of $257.40 on September 5. The following technical analysis evaluates this trajectory through multiple lenses.
Candlestick Theory
Recent sessions display bearish reversal signals near the $257.40 historic high. The September 5 shooting star candle (open $234.08, close $242.68) after a 9.64% surge revealed rejection at $257.40. This was followed by a September 9 bearish engulfing pattern, closing below the prior day’s low amid weakening momentum. Immediate support emerges between $239–$240, aligning with the September 2 breakout gap. Resistance remains firm at $250.15–$254.70, while sustained trading below $239 may trigger deeper pullbacks to $220–$225.
Moving Average Theory
The 50-day SMA ($215.73), 100-day SMA ($185.42), and 200-day SMA ($138.20) maintain steep ascending slopes, confirming a powerful long-term uptrend. Price remains elevated above all averages by 13–77%, signaling persistent bullish alignment. However, the gap between price and the 50-day SMA has contracted from 22% to 13% since September 5, suggesting near-term consolidation may precede the next trend leg. The 200-day SMA’s parabolic rise underscores the historic nature of this rally.
MACD & KDJ Indicators
The MACD (12,26,9) histogram turned negative on September 9 (-2.1), confirming a bearish crossover after a prolonged uptrend. Meanwhile, the KDJ oscillator shows divergence: While the September 5 high established a new price peak, the K-value (74) and D-value (68) remained below their August highs (K:89, D:82). This negative divergence between price and momentum suggests exhaustion. Currently, KDJ resides near neutral (K:63, D:65, J:59), neither confirming oversold conditions nor reversing bearish signals. A decisive break below the 50-level would reinforce downside potential.
Bollinger Bands
Volatility expanded dramatically during the September 2–5 surge, with price piercing the upper band ($241) and pushing bandwidth to 11-month highs. The subsequent contraction saw price retreat to the midline ($245) by September 9, with bands narrowing by 8%. This reversion signals reduced directional momentum and aligns with historical tendencies for consolidation after extreme volatility spikes. A sustained break below the midline may trigger a test of the lower band near $230.
Volume-Price Relationship
The September 5 rally to $257.40 occurred on 7.7M shares – the second-highest volume of the year – validating bullish conviction. However, declining volume during the September 8–9 pullback (4.8M and 3.2M shares respectively) indicates limited panic selling. Critical support at $239–$240 will require volume confirmation; a high-volume break below this zone would signal institutional distribution. Conversely, low-volume consolidation above $240 suggests accumulation.
Relative Strength Index
The 14-day RSI (61) retreated from overbought territory (>70) after peaking at 76 on September 5. Current readings reflect neutral momentum, with room to decline before oversold conditions (<30). Historically, dips below 50 during uptrends have presented buying opportunities. However, the weekly RSI (73) remains elevated, warranting caution. Divergence remains apparent: The price set higher highs in early September, while the RSI registered lower highs versus August, reinforcing near-term vulnerability.
Fibonacci Retracement
Applying Fibonacci to the $183.66 (September 2 low) – $257.40 (September 5 high) impulse wave yields key levels: 23.6% ($240.00), 38.2% ($229.23), and 50% ($220.53). The September 9 low ($239.02) precisely tested the 23.6% retracement before closing above $240. This level now serves as critical near-term support – a breakdown could accelerate losses toward $229 (38.2%) where the 50-day SMA converges. Resistance forms at the 0% level ($257.40), with any breakout requiring substantial volume confirmation.
Conclusion
Multiple indicators converge at $239–$240 support, including the 23.6% Fibonacci retracement, Bollinger midline, and September 2 breakout gap. Sustained trading above this zone may trigger consolidation between $240–$250, allowing overextended oscillators to reset. However, MACD’s bearish crossover, RSI divergence, and volume decay suggest near-term vulnerability. A decisive break below $239 would target $229–$230, where the 38.2% Fibonacci level converges with the 50-day SMA – a high-probability rebound zone given the primary uptrend’s integrity. Divergences between price peaks and momentum indicators (RSI, KDJ) warrant caution despite the overwhelmingly bullish long-term technical structure.