STERIS Shares Drop 1.19% To $221.21 Amid Technical Breakdown Signals

STERIS shares declined 1.19% to $221.21 in the latest session, marking a two-day cumulative loss of 3.16% as selling pressure intensified. This extended downturn signals potential technical vulnerability that warrants comprehensive analysis through multiple indicators.
Candlestick Theory
Recent sessions show bearish confirmation with two consecutive long-bodied red candles closing near session lows ($223.87 and $221.21). The price rejected resistance near $228.43, aligning with the July swing high, and now approaches critical support at $220.55 – the August 6 low that converges with the March consolidation zone. This $220 level represents a significant psychological and technical floor where buyers may emerge. Resistance now firms near $224.41 (the latest high) and $228.43 (recent swing high).
Moving Average Theory
The 50-day, 100-day, and 200-day moving averages exhibit a bearish alignment with current price ($221.21) trading below all three, confirming the downtrend. The 50-day MA (~$228) capped upside attempts in early August, while the 200-day MA (~$232) provided formidable resistance throughout July. This configuration suggests sustained bearish control. The moving averages are stacked in descending order – a classic bearish sequence indicating entrenched selling pressure across timeframes.
MACD & KDJ Indicators
MACD shows accelerating bearish momentum, with the histogram deepening below the zero line and a sustained bearish crossover signal. KDJ readings (%K: 7.0, %D: ~15) indicate extreme oversold conditions, with %K plunging below 10 for the first time since April. While this suggests potential exhaustion of selling pressure, it has yet to trigger bullish divergence. Confluence emerges in the oversold readings between KDJ and Bollinger Bands, though without reversal confirmation.
Bollinger Bands
Price trades near the lower band ($219) after bands expanded sharply during the two-day selloff – a volatility signal often preceding continuation moves. The close below the 20-day moving average centerline ($225) reinforces bearish control. Band contraction preceded the recent breakdown, suggesting compressed energy was released to the downside. A sustained break below $219 would open deeper downside targets.
Volume-Price Relationship
Downside volume surged to 725,977 shares (August 6) – 25% above the 30-day average – confirming capitulation-style selling. Distribution patterns emerged as volume expanded on down days throughout July, while recovery attempts lacked volume commitment. The highest volume peaks correspond to breakdown events (notably May 15 and August 6), validating resistance strength near $229-$230. Current volume profile suggests bearish conviction.
Relative Strength Index (RSI)
The 14-day RSI reading of 44 reflects neutral territory despite the price decline. However, this reading masks developing bullish divergence: The RSI formed a higher low in late July while price made lower lows. Despite currently hovering near oversold thresholds, the indicator hasn't breached 30 during this decline, potentially suggesting lingering downside risk. Traders should monitor for RSI confirmation of oversold conditions (<30) for reversal signals.
Fibonacci Retracement
Measured from the May 19 peak ($252.55) to the August 6 low ($220.55), key levels provide strategic markers: 23.6% ($229), 38.2% ($235), and 50% ($236.50). The failed recovery stalled precisely at the 23.6% level ($228.43) in early August, reinforcing resistance. Short-term retracement from the August 4 high ($228.43) projects potential reversal zones at $224.49 (50%) and $222.41 (23.6%). These Fibonacci levels converge with moving averages and volume-based resistance, creating multi-indicator barriers.
Confluence and Divergence
Strong confluence emerges in the $228-$230 resistance zone, validated by multiple indicators: 50-day MA, Fibonacci 23.6% retracement, volume caps, and prior swing highs. Similarly, the $219-$220 support sees Bollinger Band alignment with historical consolidation. Notable divergence exists between KDJ's extreme oversold signal and RSI's absence of oversold confirmation – a tension requiring resolution through either a bullish reversal or bearish continuation.