Sea Limited Shares Drop 4.00% Amid Heavy Selling Pressure Near Key Resistance

Sea Limited (SE) closed at $185.25 on 2025-09-23, declining 4.00% during the session with a trading range between $185.01 and $192.52. This drop occurred on elevated volume of 3.57 million shares, significantly higher than the previous session's 2.36 million shares, signaling increased selling pressure near key resistance levels. The analysis below examines the technical landscape using multiple frameworks.
Candlestick Theory
Recent price action shows Sea testing the $185 support level, which has now been breached intraday for two consecutive sessions. The sharp decline on September 23 formed a bearish marubozu-like candle (with minimal upper shadow), indicating sustained selling pressure throughout the session. Resistance is firmly established at $192.50-$193.00, aligning with the September 19 and 22 highs. The $178-$180 zone represents the next significant support, correlating with the August 20 low and the 50-day moving average.
Moving Average Theory
The 50-day SMA (approximately $179.00) maintains an upward slope, reflecting residual medium-term strength. However, the recent close below the 20-day EMA ($188.40) and 100-day SMA ($174.50) suggests deteriorating short-term momentum. Crucially, the price is now testing the 50-day SMA from above. A sustained break below this level could accelerate selling pressure, while the ascending 200-day SMA ($155.00) underpins the long-term trend.
MACD & KDJ Indicators
The MACD histogram has turned negative, with the signal line crossing below the MACD line on September 19 – a bearish confirmation preceding the recent drop. Simultaneously, the KDJ oscillator shows the %K line (15.2) crossing below the %D line (28.7) in oversold territory. This divergence suggests excessive near-term selling, though the oversold KDJ reading hasn't yet catalyzed a meaningful reversal. Caution is warranted as momentum oscillators can remain oversold during strong downtrends.
Bollinger Bands
Bollinger Band width expanded sharply during the September decline, reflecting rising volatility. The price closed near the lower band ($184.50), typically indicating oversold conditions. However, the break below the mid-band ($189.20) confirms the bearish short-term bias. The last time Sea traded at the lower Bollinger Band in late August preceded a 10% rebound, suggesting similar reflex rallies may occur if $185 support holds.
Volume-Price Relationship
Distribution patterns are evident: The three highest volume days since mid-August include the 19% surge (19.4M shares) on August 12, the 4% drop (3.57M shares) on September 23, and the breakdown below $190 (4.2M shares) on September 18. This volume alignment with directional moves validates the current downtrend. The absence of comparable volume on up days since early September indicates weak buying conviction.
Relative Strength Index (RSI)
The 14-day RSI (43.5) has retreated from near-overbought territory (68.9 on September 11) but remains above oversold levels. While not yet signaling an extreme condition, the speed of the RSI decline from September 11-23 shows accelerating bearish momentum. Historical reversals have often occurred when RSI approached 35, making the current reading a potential precursor to consolidation.
Fibonacci Retracement
Using the swing low of $92.85 (September 24, 2024) and high of $196.50 (September 11, 2025), key retracement levels emerge: The 23.6% level at $172.30 now converges with the rising 50-day SMA, creating a high-probability support zone. The 38.2% level at $156.90 aligns with the 100-day SMA and August swing lows. This Fibonacci structure provides clear downside targets should $185 support fail.
Confluence and Divergence
Notable confluence exists at $172-$174, where the Fibonacci 23.6% retracement, 50-day SMA, and August low ($178.74) create a major support cluster. Bearish divergences are observed between price and momentum: While Sea made lower highs in September, the MACD and RSI registered sequentially lower peaks. Conversely, the oversold KDJ reading diverges with continued price weakness, suggesting potential for a counter-trend bounce if $185 holds.
Synthesis
Sea faces near-term headwinds after breaking key support at $185. Bearish confirmation comes from the MACD crossover, volume-supported decline, and Bollinger Band breakdown. While the 50-day SMA and Fibonacci zone at $172-$174 offer robust medium-term support, a close below $185 may trigger extended downside toward $178. Traders should monitor RSI and KDJ for oversold reversals, while the $172-$174 confluence represents a high-probability reversal zone for long-term investors. The technical structure suggests controlled consolidation is likely before the next sustained directional move.