Sea Ltd Stock Plunges 7.87% As Technical Breakdown Triggers Bearish Signals

Sea Ltd. (SE) closed at $155.29 on July 21, 2025, down 7.87% with significant volume of 7.74 million shares. This decline breached key technical levels, prompting a multifaceted technical assessment.
Candlestick Theory
The July 21 session formed a long bearish candle breaking below the $157–$160 consolidation support established in mid-June. This follows a failed rally to $170 on July 18, creating a lower high. Critical support now resides near $150 (May–June swing low) and $145.24 (July 10 low). Resistance has formed between $161.80 and $165.58, aligning with the breakdown point and the day’s high.
Moving Average Theory
Price has crossed below all key moving averages, signaling trend deterioration. The 50-day MA (currently near $163) turned downward after acting as dynamic resistance during the July 21 selloff, while the 100-day and 200-day MAs (approximately $156 and $135) show flattening momentum. A sustained break below the 200-day MA would confirm a long-term bearish shift.
MACD & KDJ Indicators
MACD exhibits a bearish crossover with the histogram accelerating below zero, reflecting strengthening downward momentum. KDJ readings have plunged toward oversold territory (%K: 20, %D: 30), yet absence of bullish divergence suggests limited reversal impetus. Both oscillators align in signaling continued downside pressure despite nearing oversold conditions.
Bollinger Bands
The July 21 close near the lower band (∼$154) occurred alongside a 15% band width expansion – the sharpest volatility spike in two months. This break of the "Bollinger Squeeze" typically precedes directional continuation, heightening the risk of extended declines. A close below the lower band may trigger further selloffs toward $150.
Volume-Price Relationship
Downside volume conviction was notable: July 21 volume surged 78% above the 20-day average, confirming bearish momentum. This distribution pattern contrasts with the May–June advance, which featured higher volume on up-days. Ongoing selling pressure would be invalidated only by a high-volume recovery above $161.
Relative Strength Index
The 14-day RSI (currently 29) entered oversold territory, last seen during the mid-April pullback. While this may foreshadow a short-term bounce, the indicator has not yet demonstrated bullish divergence. The RSI’s warning value is tempered by Sea’s history of extended oversold conditions during corrective phases.
Fibonacci Retracement
Using the $172.65 high (June 5) and $144.24 low (July 10), critical Fibonacci levels are now in play. The July 21 low ($154.77) precisely tested the 61.8% retracement ($155.10), offering initial support. A decisive break targets the 76.4% level at $150.95. Any recovery must reclaim the 38.2% retracement ($161.80) to stabilize the technical structure.
Concluding Synthesis
Confluence of bearish signals is evident: The breakdown below moving averages, expanding Bollinger Bands, high-volume selling, and MACD/KO deterioration collectively validate the bearish trend. Critical support resides at the 61.8% Fibonacci level ($155.10), which held on July 21. A close below $154.77 would likely accelerate declines toward $150–$145. Conversely, the deeply oversold RSI and Fibonacci support could catalyze a technical bounce, but sustainability requires reconquering the $161.80 resistance with commensurate volume confirmation.