Coca-Cola FEMSA Plunges 8.5% In Two Days As Bearish Momentum Accelerates

Coca-Cola FEMSA (KOF) declined 4.83% to $89.67 in the most recent session, extending its two-day loss to 8.49%, as bearish momentum accelerated with expanding volume.
Candlestick Theory
The recent two-day plunge formed consecutive bearish engulfing candles, confirming substantial selling pressure. The last session closed precisely at its intraday low ($89.67), reflecting persistent downside momentum. Key support now emerges near the $88.00-$89.00 zone, aligning with the April 2025 lows. Resistance is established at $94.28 (previous swing low) and $97.13 (Fibonacci 61.8% retracement). Violation of the $89.67 level may trigger further downside toward $85.00.
Moving Average Theory
The 50-day MA has crossed below both the 100-day and 200-day MAs, confirming a bearish trend reversal. Current price ($89.67) trades 7.2% below the 50-day MA ($96.58), 10.5% below the 100-day MA ($100.20), and 10.3% below the 200-day MA ($99.99). This sustained deviation below all key moving averages signals entrenched bearish momentum, with the death cross (50/200) reinforcing structural weakness.
MACD & KDJ Indicators
The MACD histogram shows accelerating negative momentum, with both MACD and signal lines entrenched below zero. Meanwhile, the KDJ oscillator registers extreme oversold conditions (K-value: 12, D-value: 18), nearing levels last seen during the March 2025 correction. While this divergence suggests potential exhaustion of selling pressure, it coincides with a strong downtrend where oversold readings can persist.
Bollinger Bands
Price has breached the lower Bollinger Band ($92.50 on 20-day basis), while bandwidth expansion to 18% (from 12% two weeks prior) confirms rising volatility. Historical band violations have preceded short-term mean-reversion bounces, though such moves remain counter-trend without bullish confirmation. Sustained trading below the lower band often precedes extended declines.
Volume-Price Relationship
The 2% volume increase during the 4.83% decline signifies strong bearish conviction. The 20-day volume average (234,000 shares) was exceeded during both down days, confirming distribution. Notably, volume on the 8.49% two-day drop exceeded volume during the preceding four up days, demonstrating capitulatory selling.
Relative Strength Index (RSI)
The 14-day RSI (28) entered oversold territory, reflecting the most compressed momentum since March 2025. While this warns of potential technical rebound, the indicator has not yet demonstrated bullish divergence. Traders should note that RSI can remain oversold for extended periods during strong trends - the 2024 Q4 downtrend saw 22 consecutive sub-30 RSI days.
Fibonacci Retracement
Using the April 23, 2025 high ($101.74) and July 9, 2025 low ($89.67), key levels are: 23.6% ($92.52), 38.2% ($94.28), 50% ($95.71), and 61.8% ($97.13). The current price sits below all retracement levels, indicating bearish dominance. The 38.2% ($94.28) aligns with the July 8 low and 20-day moving average, creating a critical resistance confluence. Recovery above $92.52 is required to signal technical stabilization.
Confluence & Divergence Observations
Bearish confluence appears across momentum indicators (MACD), trend-following tools (moving averages), and volume signals, collectively supporting continuation risks. A notable divergence exists between oversold oscillators (RSI, KDJ) and price action - while typical of capitulation phases, this requires confirmation via bullish reversal patterns. The Fibonacci 23.6% ($92.52) and Bollinger Midline ($94.50) present immediate technical barriers for any rebound attempts.