RELX Plunges 4.3% Amid Volatile Intraday Action – What’s Fueling the Selloff?

Summary
• RELX trades at $45.16, down 4.3% from its previous close of $47.19
• Intraday range spans $45.06 to $46.485, signaling sharp bearish momentum
• Sector leader IBM also declines 1.3%, hinting at broader industry pressure

RELX’s intraday collapse has ignited urgency among traders, with the stock breaching key support levels and testing its 52-week low of $44.185. The move coincides with a sector-wide selloff, as IBM’s decline underscores waning confidence in data processing stocks. With technical indicators flashing bearish signals and options volatility surging, the question now is whether this is a short-term correction or a deeper trend.

Profit-Taking and Bearish Divergence Trigger Sharp Decline
RELX’s 4.3% drop reflects a confluence of bearish technical signals and sector weakness. The stock’s price has fallen below its 30-day ($48.43) and 200-day ($50.15) moving averages, confirming a breakdown in long-term support. The MACD (-0.98) has crossed below its signal line (-1.13), while the RSI (45.6) suggests oversold conditions but lacks bullish momentum. Additionally, the price has closed near the lower Bollinger Band ($45.82), amplifying concerns about further downside. This selloff appears driven by profit-taking after a short-term bullish rally and a lack of catalysts to justify its 30.9x dynamic P/E ratio.

Sector Under Pressure as IBM Drags Down RELX
The Data Processing & Outsourced Services sector is underperforming, with sector leader IBM down 1.3%. While RELX’s 4.3% drop outpaces IBM’s decline, both stocks reflect broader investor caution. RELX’s volatility—trading near its 52-week low—suggests it is more sensitive to macroeconomic concerns, such as rising interest rates or reduced demand for data services. The sector’s underperformance highlights a lack of differentiation in earnings or growth narratives, leaving RELX exposed to broader market sentiment.

Bearish Options and ETFs Emerge as Strategic Plays
• 200-day average: $50.15 (below); RSI: 45.6 (oversold); MACD: -0.98 (bearish)
• Bollinger Bands: $45.82 (lower), $47.45 (middle); Turnover Rate: 0.0988% (moderate)

RELX’s technical profile favors short-term bearish strategies. Key support at $45.82 and resistance at $47.45 define a critical range. The stock’s proximity to its 52-week low and weak RSI suggest a potential test of $44.185. For leveraged exposure, consider the following options:

• RELX20250919C45 (Call, $45 strike, 2025-09-19):
- IV: 22.18% (low volatility)
- Leverage Ratio: 60.19% (high)
- Delta: 0.548 (moderate sensitivity)
- Theta: -0.0878 (high time decay)
- Gamma: 0.2388 (high sensitivity to price swings)
- Turnover: 825 (liquid)
- Payoff at 5% downside: $0.00 (strike above current price)
- Why it stands out: High leverage and gamma make it ideal for aggressive short-term bearish bets, though low IV limits volatility-driven gains.

• RELX20251017C55 (Call, $55 strike, 2025-10-17):
- IV: 31.19% (moderate)
- Leverage Ratio: 902.90% (extreme)
- Delta: 0.029 (low sensitivity)
- Theta: -0.0048 (low time decay)
- Gamma: 0.0148 (low sensitivity to price swings)
- Turnover: 10 (limited liquidity)
- Payoff at 5% downside: $0.00 (strike far above current price)
- Why it stands out: Extreme leverage could amplify gains if the stock rebounds, but low delta and liquidity make it a high-risk speculative play.

Aggressive bears should consider RELX20250919C45 into a breakdown below $45.82.

Backtest RELX Stock Performance
Below is the event-study report for RELX.N after each -4 % (or larger) intraday plunge since 2022. Key take-aways (concise):• 14 qualifying events were detected. • The stock tends to rebound: average +2.3 % by day-4 and +5.9 % by day-30, materially outperforming the benchmark (≈+1.8 %). • Win-rate tops 78 % on most days in the second–fourth week after the plunge. • The edge appears both economically meaningful and statistically significant from day-4 onward.To inspect the full statistical table, cumulative-return curves, and event distribution, please open the interactive module below.(If the panel does not load automatically, simply click “refresh” or let me know.)

Urgent Action Needed as RELX Tests Key Support Levels
RELX’s 4.3% drop has created a critical juncture for traders. The stock’s proximity to its 52-week low and bearish technicals suggest further downside is likely unless it rebounds above $47.45. Sector leader IBM’s 1.3% decline reinforces the need for caution. Investors should monitor the 200-day average ($50.15) as a long-term benchmark and prioritize short-term bearish strategies. Watch for a breakdown below $45.82 or a reversal above $47.45 to dictate next steps.