GE HealthCare Shares Drop 3.35% to $71.50 Marking Fourth Straight Decline

GE HealthCare (GEHC) shares declined 3.35% to close at $71.50 in the latest session, marking the fourth consecutive daily decline with a cumulative loss of 4.55% over this period. The price action reflects ongoing bearish pressure, testing the recent low of $69.79 established during the session. A comprehensive technical analysis follows, integrating multiple indicators to assess the current trend dynamics and potential future movements.
Candlestick Theory
The recent four-day decline features successive bearish candles with lower highs and lows, culminating in a long-legged doji on 2025-09-25 (open: $72.13, close: $71.50, high: $72.90, low: $69.79). This pattern indicates rejection of higher prices despite intraday recovery attempts, with $69.79 emerging as immediate support. Resistance is firm at $73.98–$74.91, where multiple prior daily closes occurred. The failure to sustain above $75.54 on 2025-09-19 confirmed bearish control, with $70 acting as a psychological barrier.
Moving Average Theory
The price trades below all key moving averages—50-day ($73.80), 100-day ($75.20), and 200-day ($78.40)—signaling entrenched bearish momentum. The 50-day has crossed below both the 100-day and 200-day averages, forming a "death cross" that typically reinforces downward trajectories. Additionally, the 100-day remains below the 200-day, confirming a longer-term bearish alignment. This configuration suggests sustained selling pressure, with rallies likely to face resistance near the 50-day MA.
MACD & KDJ Indicators
The MACD (-1.25) resides below its signal line with a widening negative histogram, confirming bearish acceleration. Meanwhile, the KDJ oscillator shows an oversold reading (K: 18, D: 22, J: 10), though without bullish divergence. While KDJ’s sub-20 level traditionally signals oversold conditions, the absence of bullish confirmation from MACD or price action suggests persistent downward momentum. This divergence between KDJ’s oversold signal and MACD’s bearishness warrants caution; a reversal requires supportive volume or candlestick patterns.
Bollinger Bands
Price sits near the lower Bollinger Band ($70.80), with the bands expanding significantly—volatility has increased 40% over the past week. The expansion typically precedes directional moves, and the current position near the lower band may indicate oversold conditions. However, a close below $70 would activate bearish breakout confirmation. Contracting bands would be needed to signal reduced bearish momentum, but the current expansion aligns with the established downtrend.
Volume-Price Relationship
Volume surged to 5.02 million shares during the latest decline, 116% above the 30-day average, confirming the bearish breakout with strong participation. Notably, distribution patterns occurred near the $75–$78 resistance zone in September (e.g., 6.29 million shares on 2025-09-19). Conversely, bullish reversals in May and July saw volume spikes exceeding 8 million shares, absent in the current decline. Sustained high volume below $70 would validate bearish continuation.
Relative Strength Index (RSI)
The 14-day RSI reads 29, nearing oversold territory (<30). Historically, similar levels in late July and August preceded short-term rebounds. However, RSI can remain oversold during strong trends, and the current lack of bullish divergence tempers reversal expectations. A climb above 35 would signal easing downward momentum, but until then, oversold readings serve only as cautionary flags rather than entry signals.
Fibonacci Retracement
Applying Fibonacci to the recent downswing from $75.54 (2025-09-19 high) to $69.79 (2025-09-25 low) identifies key retracement levels: $71.14 (23.6%), $72.17 (38.2%), and $72.67 (50%). The current price is testing the 23.6% retracement as resistance-turned-support. A breach below $69.79 would expose the 2025-08-06 low of $69.58. Conversely, recovery above $72.67 (50% retracement) is needed to challenge the multi-week descending trendline.
Confluence and Divergence Observations: Bearish confluence is evident across indicators—moving average alignment, MACD deterioration, and volume-backed breakdowns. Notable divergence exists between oversold KDJ/RSI readings and unresolved bearish structure. Key near-term confluence rests at $70.00–$69.79, combining Bollinger Band support, psychological levels, and Fibonacci extensions. Probabilistically, the weight of evidence suggests further downside unless a volume-backed close above $72.90 materializes.