Charter Communications Slides 6.27% In Three Days As Technicals Signal Extended Downtrend

Charter Communications (CHTR) Technical Analysis
Charter Communications (CHTR) declined 3.42% on October 9, 2025, closing at $265, marking its third consecutive down day with a cumulative loss of 6.27% over this period. This recent weakness reflects broader technical deterioration, analyzed below using multiple frameworks.
Candlestick Theory
Recent price action reveals a clear short-term downtrend. The most recent session formed a relatively long bearish candle closing near its low, indicating persistent selling pressure. Key support is emerging near the late-August consolidation zone around $260-$262, where the price stabilized before September’s rally. Immediate resistance now lies at $275-$280, validated by the October 6 high of $283.52 and reinforced by prior closes failing to hold above $275. A cluster of bearish candles near current levels underscores negative sentiment.
Moving Average Theory
Charter trades below all major moving averages (50-day ~$303, 100-day ~$333, 200-day ~$348), confirming a bearish trend structure. The 50-day MA crossed below the 200-day MA (Death Cross) in mid-September, reinforcing long-term weakness. The widening gap between shorter and longer-term averages highlights accelerating downside momentum. Until price reclaims the 50-day MA, the path of least resistance remains downward.
MACD & KDJ Indicators
MACD (12,26,9) is negative and widening, with the signal line maintaining a bearish trajectory since early September. This signals strengthening downward momentum without reversal signs. KDJ shows the %K and %D lines entrenched in oversold territory (<20), though the lack of a bullish crossover suggests continued pressure. While oversold, neither oscillator yet indicates a credible reversal signal, aligning with the broader bearish trend.
Bollinger Bands
Bollinger Bands are expanding significantly, reflecting heightened volatility. Price is testing the lower band ($262), which may offer temporary support. However, sustained trading near the lower band combined with expanding width often precedes continuation moves. Contraction would be necessary to signal reduced volatility and potential stabilization. Current band dynamics favor extended downside risk.
Volume-Price Relationship
Recent selling occurred on rising volume (2.08M shares vs. 1.45M prior), validating bearish conviction. Down days since October 7 have seen higher volume than up days, confirming distribution. Notably, the October 3 rally to $280 on 1.68M shares lacked follow-through volume, reinforcing the resistance significance near $280. Sustained declines on increasing volume diminish near-term recovery prospects.
Relative Strength Index (RSI)
The 14-day RSI (~35) is approaching oversold territory but hasn’t yet reached <30 extremes. Previous oversold readings near 30 in June and August preceded technical bounces, but RSI has made marginally higher lows while price hit new lows—a potential positive divergence developing cautiously. That said, RSI’s "warning" nature warrants confirmation; it may only indicate slowing momentum rather than imminent reversal.
Fibonacci Retracement
Applying Fib retracement to the July high (~$420) and October low ($265) shows critical levels. The 38.2% retracement ($320) served as resistance in September. Current price struggles below the 23.6% level ($290), reinforcing it as immediate resistance. Downside targets could extend toward psychological support at $250. Confluence exists at $280 (resistance) and $260 (support), aligning with candlestick and volume observations.
Confluence & Divergence
Confluence in bearish signals is evident: MA alignment, MACD negativity, volume-supported breakdowns, and resistance near Fib levels collectively emphasize structural weakness. A tentative divergence exists in RSI, suggesting downside exhaustion may be nearing, though unsupported by other oscillators. Probabilistically, the weight of evidence favors further downside or consolidation unless volume-backed reversal patterns emerge above $275. Key watchpoints remain $260 support and $280 resistance for directional cues.