Oneok (OKE) plunges 3.77% on two-day 4.67% slide as bearish indicators signal further declines.

Oneok (OKE) Technical Analysis
Oneok (OKE) has experienced a sharp correction, declining 3.77% in the most recent session to close at $70.87, extending a two-day downward trend with a cumulative drop of 4.67%. The bearish momentum is evident in the candlestick patterns, where a potential bearish engulfing pattern has formed following a prior bullish session.

Key support levels to monitor include the 200-day moving average (approximately $73.50) and the recent low of $70.63, while resistance is temporarily absent due to the downward bias.

Candlestick Theory

The recent price action suggests a continuation of bearish pressure, with a potential breakdown below the $71.00 psychological level. A bearish harami pattern may form if the next session closes within the range of the prior bearish candle, reinforcing the likelihood of further declines. Critical support levels at $70.63 (intraday low) and $70.00 (psychological level) could trigger stop-loss activity or short-term rebounds if buyers emerge.

Moving Average Theory

The 50-day moving average (~$73.00) and 200-day moving average (~$73.50) both lie above the current price, confirming a medium-term downtrend. The 100-day MA (~$73.20) is also in play, indicating a bearish crossover scenario. The price remains below all three averages, suggesting continued weakness until a sustained rebound above $74.00 occurs. A flattening of the 50-day MA could hint at waning bearish momentum, but this remains speculative.

MACD & KDJ Indicators

The MACD histogram has turned negative, with the MACD line crossing below the signal line, signaling a bearish crossover. The KDJ indicator shows stochastics in oversold territory (K ~25, D ~30), which typically suggests a potential bounce. However, divergence between the KDJ’s oversold reading and the MACD’s bearish momentum implies caution—while a short-term rebound is possible, the broader downtrend may persist without a decisive break above $74.00.

Bollinger Bands
Volatility has expanded as the bands widen, reflecting heightened selling pressure. The price currently rests near the lower band at $70.63, a zone where a bounce is statistically probable. However, a break below this level could trigger a test of the $69.00 psychological support, with the upper band at $75.00 acting as a distant resistance.

Volume-Price Relationship

Volume has spiked on recent down sessions, particularly on January 6, with 4.66 million shares traded, validating the bearish move. However, declining volume on the most recent session suggests waning conviction among sellers. This mixed signal implies that while the short-term trend is bearish, a lack of follow-through volume may limit further declines unless a new catalyst emerges.

Relative Strength Index (RSI)

The 14-day RSI has fallen to ~28, entering oversold territory. This historically suggests a potential reversal, but given the stock’s recent weakness, it may indicate exhaustion rather than a bottoming signal. Traders should watch for a confirmation candlestick pattern (e.g., a bullish engulfing) above $71.50 to validate the RSI’s oversold reading.

Fibonacci Retracement

Key Fibonacci levels derived from the recent high of $75.45 and low of $70.63 include 61.8% at $72.50 and 78.6% at $71.20. A rebound off the 61.8% level could see buyers test $73.00, while a breakdown below 78.6% would target $70.00. Confluence between the 78.6% retracement and the Bollinger Band lower band strengthens the significance of $71.20 as a critical support zone.

Conclusion

The technical landscape for Oneok remains bearish, with multiple indicators aligning on a continuation of the downward trend. While oversold conditions and Fibonacci support levels suggest potential short-term rebounds, the broader context of bearish momentum and moving average divergence suggests a cautious approach. A decisive close above $74.00 would be required to invalidate the bearish case, but for now, the probability favors further consolidation or declines near key support levels.