Equifax Stock Plunges 4.29% as Technical Indicators Signal Extended Downtrend

Equifax (EFX) closed at $255.98 in the most recent session, down 4.29% on elevated volume of 1.24 million shares, suggesting intensified selling pressure. The following technical analysis evaluates this move within the context of multiple indicators.
Candlestick Theory
Recent price action shows Equifax breaking below the critical support zone of $256–$258, which previously stemmed declines in late May 2025. This breach, coupled with the formation of a long lower wick ($255.98 close vs. $252.40 low) on high volume, signals potential intraday bargain hunting but underscores vulnerability. Resistance now clusters near $259–$263, aligning with the prior support-turned-resistance and recent highs. The breakdown below the $258 level may open a path toward the major psychological support at $245–$250, particularly as the stock exhibits no reversal patterns.
Moving Average Theory
The 50-day SMA (hovering near $263) and 100-day SMA (approximately $261) both slope downward, reflecting deteriorating intermediate-term momentum. Equifax’s close below both averages confirms bearish alignment, as price trades nearly 2% under the 100-day SMA. The lack of golden crosses and the sustained negative slope of the 50-day SMA (consistently below the 100-day since late May) underscore persistent selling pressure. This configuration suggests continued downward momentum may prevail unless reclaimed above $263.
MACD & KDJ Indicators
MACD (12,26,9) shows a bearish crossover below its signal line, with the histogram expanding negatively. This divergence from June’s minor price recovery highlights waning upward momentum. KDJ analysis indicates oversold conditions are approaching: %K dipped to 22.5 (from a recent high of 78), near the 20 threshold that typically signals exhaustion. However, %D remains in decline (near 32), and J-line is still falling, suggesting KDJ may not yet confirm a reversal. Confluence exists in their mutual indication of downward pressure, though KDJ’s oversold proximity warrants monitoring for potential stabilization.
Bollinger Bands
Bollinger Bands (20-day SMA, 2σ) have expanded notably, with the current price near the lower band ($252). This volatility surge reflects the breakdown’s intensity. Band contraction had preceded the mid-June sell-off, implying the current expansion may extend the downtrend. Price rejection from the lower band (evidenced by the wick) offers short-term relief potential, but sustained trading below $255 would keep the bands expanding and reinforce bearish control. Key resistance rests at the middle band near $260.
Volume-Price Relationship
Volume surged 49% during the sell-off to 1.24 million shares, validating the breakdown with conviction. The volume profile shows accumulation near $270 (April–May) and distribution at $265–$268 (June), shifting the balance toward sellers. Notable volume divergences include declining participation in the early June rebound (e.g., June 10’s +1.27% move on middling volume) versus recent high-volume declines, highlighting the unsustainable nature of upside attempts. Such volume confirmation increases the probability of further downside toward $250.
Relative Strength Index (RSI)
The 14-day RSI reads 42, retreating from June’s peak near 60 and reinforcing the loss of momentum. While not oversold (sub-30), RSI’s position below neutral (50) aligns with the bearish trend. Crucially, RSI has formed lower highs since mid-May, diverging from price consolidation, which warns of underlying weakness. RSI’s proximity to oversold territory may limit immediate downside, but a break below 30 is needed to signal exhaustion.
Fibonacci Retracement
Applying Fibonacci to the decline from the May 19 peak of $281.02 to the June 17 low of $252.40 identifies key retracement levels. The 23.6% level ($259.15) and 38.2% level ($263.33) align precisely with prior support-turned-resistance and the 50-day SMA. This creates a confluence zone at $259–$263. The breach below 23.6% retracement confirms weakness, leaving minor pullbacks likely capped near $259. A sustained recovery above $263 would challenge the bearish structure.
Convergent evidence from moving averages (price below SMA50/100), volume (high-volume breakdown), and candlestick theory (resistance at $259–$263) underscores persistent bearish momentum. However, non-oversold RSI and KDJ readings coupled with Bollinger Band rejection hint at potential near-term consolidation or a technical bounce toward $259–$260 before resuming the downtrend. Major divergences are absent, but KDJ’s oversold approach merits vigilance for reversal signals, especially below $250.