Constellation Brands Extends Losses To 2.08% Amid Bearish Technical Signals

Constellation Brands (STZ) declined 1.54% to close at $167.95 in the latest session, extending its losing streak to two consecutive days with a cumulative loss of 2.08%. This downward momentum forms part of a broader technical context revealed through the following analysis.
Candlestick Theory
Recent candlestick patterns indicate bearish pressure near the $172 resistance level. The July 17th bullish candle (2.02% gain) was invalidated by subsequent bearish engulfing patterns on July 18th and 21st, confirming resistance near $172–172.50. Key support emerges at $166–167, anchored to the July 15th–16th consolidation range and the July 21st low of $167.87. A decisive break below $166 would expose the $162–163 zone, while recovery above $172.50 is needed to neutralize near-term bearishness.
Moving Average Theory
The 50-day, 100-day, and 200-day moving averages exhibit a bearish alignment, with current price ($167.95) trading below all three. The 50-day MA near $172 and the 100-day MA near $175 are acting as dynamic resistance, reinforcing the downtrend observed since early 2025. The recent rejection at the 50-day MA on July 18th underscores persistent selling pressure. The 200-day MA near $180 further solidifies the long-term bearish structure.
MACD & KDJ Indicators
MACD maintains a bearish stance below its signal line, reflecting sustained negative momentum. While KDJ lines (particularly %K and %D) hover near oversold territory, they show no bullish crossover as of the latest close. This divergence between KDJ’s oversold signal and MACD’s bearish trajectory suggests insufficient buying momentum for a reversal. Both oscillators align in signaling ongoing bearish control, though KDJ’s position warrants monitoring for potential oversold rebounds.
Bollinger Bands
Price is testing the lower Bollinger Band ($166–167) after breaching the 20-period moving average (mid-band) near $170. Bandwidth expansion began on July 14th (–4.42% decline on high volume), indicating rising volatility favoring bears. The current position near the lower band suggests tentative support, but consolidation below $168 for multiple sessions would heighten risks of a breakdown toward $162.
Volume-Price Relationship
Downward movements exhibit stronger volume validation than rallies. The July 14th sell-off (–4.42%) occurred on significantly elevated volume (3.67M shares), confirming capitulation. Subsequent recovery attempts, such as July 17th’s 2.02% gain, saw weaker volume, underscoring unsustainable buying interest. The latest two-day decline materialized on above-average volume (1.91M and 2.24M shares), reinforcing bearish conviction near resistance levels.
Relative Strength Index (RSI)
The 14-day RSI (approx. 38) resides in neutral territory but trends downward. It remains above oversold (<30) levels despite the recent pullback, with no observable bullish divergence. Current RSI positioning suggests room for further downside before technical exhaustion. Historical context is critical: RSI reached oversold readings during June’s decline to $161.33, and similar conditions may be required to trigger a material rebound.
Fibonacci Retracement
Applying Fibonacci levels to the swing low of $161.33 (June 27th) and high of $175.44 (July 10th) identifies key retracement zones. The price is testing the critical 50% retracement level ($168.38), with the 61.8% level ($166.72) offering secondary support. Confluence exists between the 50% Fib level and the $167–168 horizontal support. A break below 61.8% retracement would open a path to test June’s $161.33 low.
Confluence and Divergence Observations
Significant confluence exists at $166–168, combining the Fibonacci 50–61.8% retracement zone, Bollinger lower band, and horizontal price support. Multiple indicators (moving averages, MACD, volume) align in affirming the bearish trend. Notable divergence is limited, though KDJ’s oversold lean against MACD’s bearish persistence implies internal market tension. RSI divergence is absent, with momentum consistently validating price action. The lack of bullish confirmations suggests bearish continuity is probable unless STZ reclaims $172 resistance with volume expansion.