Eversource Plunges 4.72% Amid Technical Breakdown Below Key Supports

Eversource (ES) concluded the latest session with a notable decline of 4.72%, closing at $63.39 on elevated volume of 6.01 million shares. This significant bearish momentum sets the context for the technical assessment below, employing a multi-indicator framework.
Candlestick Theory
The recent session formed a long bearish candle, engulfing the prior three days' price action and breaching the immediate support near $64.50. The pronounced lower wick ($61.53) signals intraday buying interest but fails to offset the dominant selling pressure. Key resistance now consolidates near $66.50–$67.15 (August highs), while a sustained close below $63.00 may trigger further downside toward the $61.50–$61.80 demand zone, established in May.
Moving Average Theory
Eversource trades below both the 50-day ($65.20) and 100-day ($64.80) moving averages, confirming a bearish intermediate trend. The widening gap between these averages highlights accelerating downward momentum. This configuration suggests the stock faces dynamic resistance near $65.00–$65.50, with a death cross (50-day below 100-day) likely developing if current pressures persist.
MACD & KDJ Indicators
The MACD histogram resides deeply in negative territory (-1.25), with the signal line maintaining a bearish trajectory below zero. Concurrently, the KDJ oscillator shows %K (17) and %D (24) in oversold territory, though without bullish crossover confirmation. This MACD-KDJ alignment indicates entrenched bearish momentum but flags potential exhaustion given extreme KDJ readings.
Bollinger Bands
Price breached the lower Bollinger Band ($63.80) during the session, an event typically signaling oversold conditions. However, the parallel expansion of band width—from 2.5% to 4.0% over five sessions—indicates rising volatility, which often precedes directional continuations. A close above $64.20 would be necessary to signal a mean-reversion rebound.
Volume-Price Relationship
The session's volume spike (6.01M shares vs. 20-day avg. ~2.2M) validates the bearish breakout. Distribution patterns emerged over the preceding week, as rallies toward $66.50–$67.15 occurred on declining volume. This divergence suggests institutional selling is driving the downturn, increasing confidence in the bearish trajectory’s sustainability.
Relative Strength Index (RSI)
The 14-day RSI plummeted to 28, entering oversold territory for the first time since May. While historically such levels preceded short-term bounces, the current reading coincides with a high-momentum breakdown. Traders should note that RSI can remain oversold during strong downtrends, making standalone signals unreliable without confirmation from price stabilization.
Fibonacci Retracement
Applying Fibonacci to the April–August rally (swing low $55.56 to high $68.23), the 50% retracement ($61.90) and 61.8% level ($59.90) emerge as critical downside targets. The current price sits near the 38.2% retracement ($63.80), which aligned with today's low. A failure to hold this level would open the path to $61.90, where Fibonacci confluence converges with the May consolidation base.
Confluence and Divergence Observations
Confluence strengthens the bearish outlook:
- Breakdown below moving averages, Bollinger lower band, and 38.2% Fibonacci support
- Volume-confirmed candlestick breakdown
- Oversold but uncorroborated RSI/KDJ readings
A notable divergence exists between the oversold KDJ/RSI and persisting price weakness, suggesting bearish momentum may override typical reversal signals. The breach of multi-indicator support near $64.50–$65.00 further reinforces near-term downside risks. Probabilistically, this technical structure suggests Eversource may consolidate near $63.00–$63.80 before testing the $61.50–$61.90 support zone. Any reversal attempt would require reconquering the $65.50 confluence resistance with supportive volume.