Teradyne Drops 5.23% After Hitting Key $150 Resistance Level

Teradyne (TER) declined 5.23% to close at $140.14 in the latest session, forming a decisive bearish candle after encountering significant resistance. This sharp pullback follows an extended rally, warranting a multifaceted technical assessment of the stock's trajectory.
Candlestick Theory
The October 7th candle at $140.14 exhibits a long upper wick to $150.29 and a narrow lower wick to $139.80, signaling rejection near psychological resistance at $150. This bearish engulfing pattern occurred after a prolonged uptrend and coincides with the prior swing high of $147.87 (October 6th), now reinforcing $150 as formidable resistance. Immediate support resides at $139.80 (intraday low), followed by the $134.40–$133 zone from September’s consolidation base.
Moving Average Theory
The 50-day moving average near $125 supports the ongoing intermediate uptrend, while the 100-day MA near $110 and 200-day MA near $100 anchor the primary bull market structure. However, the abrupt gap below the 10-day EMA ($144.50) on the latest session may indicate short-term trend deterioration, despite the price maintaining position above all major moving averages.
MACD & KDJ Indicators
MACD (12,26,9) shows narrowing histogram bars with the signal line hovering above zero, suggesting bullish momentum is fading but not yet reversed. Concurrently, KDJ metrics (particularly the %K line near 50) have retreated from overbought territory, resetting from last week’s peak above 80. The lack of bullish crossovers in either oscillator amidst the pullback potentially signals further downside consolidation.
Bollinger Bands
Volatility expanded as prices pierced the upper band on October 6th ($150.71 vs. upper band ~$148), typically signaling overextended conditions. The subsequent retreat to the $140 region approaches the 20-day moving average midpoint (near $138). Narrowing bandwidth over the prior two weeks indicated a coiled breakout setup, which has now resolved bearishly.
Volume-Price Relationship
The 5.23% down day recorded volume of 3.69 million shares, marginally below the 50-day average. Notably, the most consequential volume spikes occurred during key trend developments: the 12.79% breakout surge on September 22nd (7.14M shares) and the capitulation low on July 30th (19.8M shares). The absence of climactic selling pressure during this retreat suggests distribution rather than panic.
Relative Strength Index (RSI)
The 14-day RSI near 67 has retreated from overbought levels (above 75 last week), though remains elevated following the sustained rally. While the metric exited the overbought threshold (>70), it has not yet reached oversold territory. Divergence emerged when prices hit new highs in early October while RSI registered lower peaks, warning of weakening momentum.
Fibonacci Retracement
Applying Fibonacci levels to the 2025 uptrend from $83 (June low) to $150.29 (October high) yields key retracement zones: 23.6% ($134.41), 38.2% ($124.59), and 50% ($116.65). The current pullback finds initial support near the 23.6% level ($134.41), aligning with September’s consolidation base ($133-$135). A sustained break below $134.41 may expose the 38.2% retracement.
Confluence and Probabilities
Multiple indicators signal caution through confluence: the bearish engulfing candle at $150 resistance aligns with RSI divergence and Bollinger Band rejection. However, the primary uptrend remains technically intact above $134.41 (23.6% Fibonacci), supported by volume patterns showing no distribution climax. The 50-day MA ($125) and 38.2% Fibonacci ($124.59) present a high-conviction support cluster should selling intensify. Traders should monitor price action near $139.80-$134.40 for stabilization evidence, as a decisive break below may trigger extended profit-taking toward $124-$125.