Charter Communications Plunges 18.49% To $309.75 Amid Bearish Technical Breakdown

Charter Communications (CHTR) experienced a significant 18.49% decline in the most recent session, closing at $309.75 after two consecutive days of losses totaling 22.19%. This sharp downturn establishes immediate resistance near $380 (prior support from July 24) and critical support at $307.34 (recent intraday low), with a close below this level potentially triggering further downside acceleration.
Candlestick Theory
The two-day plunge formed back-to-back bearish marubozu-like candles with minimal upper wicks, reflecting relentless selling pressure. Recent price action invalidated the psychological $400 support zone that had held through early July, converting it to resistance. The breach of the $390–$395 range (July 22–23 lows) confirmed distribution, while the elongated lower shadow at $307.34 suggests tentative buying interest. A reversal would require recovery above $335.52 (yesterday’s high) and ideally a close above $350.
Moving Average Theory
All key moving averages exhibit bearish alignment: the 50-day MA ($392) crossed below both the 100-day MA ($405) and 200-day MA ($415) three weeks ago, establishing a "death cross." The current price trades 26% below the 200-day MA – the widest negative deviation in the dataset – confirming entrenched bearish momentum. The slope of the 200-day MA has flattened after eight months of gains, signaling potential long-term trend degradation.
MACD & KDJ Indicators
The MACD histogram (-18.2) resides at its most negative level since November 2024, with both signal line and MACD plunging deeper into bearish territory. While the KDJ oscillator shows extreme oversold conditions (K=12, D=15, J=6), the absence of bullish divergence alongside accelerating price declines suggests momentum remains downward. Neither indicator currently signals reversal potential; instead, they reflect capitulatory selling. A bullish MACD crossover or KDJ hook above 20 would be needed to indicate stabilization.
Bollinger Bands
A pronounced band expansion occurred during the sell-off, with the 20-day band width increasing 45% over two days as price breached the lower band ($325). This indicates volatility breakout to the downside. While such breaches often precede mean-reversion bounces, the absence of reversal confirmation and expanded band width implies continuation risk remains elevated. A close back within the bands is necessary to signal exhaustion.
Volume-Price Relationship
Volume surged to 9.63 million shares during the 18.49% decline – 274% above the 30-day average and the highest volume since April’s rally. This distribution climax confirms institutional participation in the sell-off. Volume profiles since June showed weakening upside participation (lower volume on rallies) preceding the breakdown, validating the bearish move. Sustained recovery would require advancing volume exceeding 6 million shares.
Relative Strength Index (RSI)
The 14-day RSI plummeted to 14 – the lowest reading in the dataset and deep within oversold territory. Historically, readings below 20 preceded short-term bounces (notably in October 2024 and January 2025). However, in the current context of fundamental catalysts driving selling, this warns of potential oversold extension rather than signaling imminent reversal. Technical repair would require RSI recovery above 30 with supporting price action.
Fibonacci Retracement
Applying Fibonacci levels to the recent downtrend from the $437.06 April peak to the $307.34 low shows critical retracement hurdles at $350.80 (23.6%) and $372.20 (38.2%). These align with the July support break and July 24 low, creating a confluence resistance zone. Any recovery would face layered selling pressure at these levels. The decline exceeded the 78.6% retracement of the 2024–2025 advance, indicating structural damage to the long-term uptrend.
Confluence appears at $350–$355, where Bollinger Band mid-line, 23.6% Fibonacci, and the July breakdown point converge – making this a pivotal resistance zone for any recovery attempt. Notable divergences include the extreme oversold RSI/KDJ readings without corresponding bullish reversals in price or MACD, suggesting unresolved downward pressure. The technical posture remains decidedly bearish, though conditions increasingly support a potential technical bounce for tactical traders pending confirmation.