Truist Financial Slides 4.38% to $42.31 Amid Strong Selling Pressure and Technical Breakdown

Truist Financial (TFC) declined 4.38% in the latest session, closing at $42.31 after trading between $42.30 and $44.50 on above-average volume of 8.51 million shares, indicating strong selling pressure and establishing a new local low.
Candlestick Theory
The recent price action shows a distinct bearish pattern, with the Oct 10 session forming a long red candle closing near its low after brief consolidation. This breakdown below the $43.00 level – which had acted as support during September – suggests conviction in the downtrend. The $42.30 level represents immediate support, while resistance now converges around $44.50-$45.00, aligning with last week's consolidation highs and the September 2024 swing low.
Moving Average Theory
Price currently trades below all key moving averages, with the 50-day ($45.80), 100-day ($44.30), and 200-day ($43.70) displaying a bearish alignment. The 50-day crossing below the 200-day (Death Cross) in mid-September confirmed the intermediate downtrend. Yesterday's close below the 200-day MA for the first time since April underscores weakening long-term structure. Failure to reclaim $44.30 would maintain bearish momentum.
MACD & KDJ Indicators
MACD remains firmly negative territory (-1.25) with histogram divergence showing accelerating downside momentum since early October. Meanwhile, KDJ registers extreme oversold conditions (K:12, D:15, J:6) though without bullish crossover confirmation. While deeply oversold readings hint at potential technical rebound, the MACD's sustained bearish crossover since September suggests caution against premature reversal calls.
Bollinger Bands
Bollinger Bands expanded sharply during the breakdown, with price piercing the lower band ($42.80) – historically a transient condition. Bandwidth expansion from 6% to 9% during October reflects rising volatility, typical of directional moves. A reversion toward the middle band ($44.60) might occur, but the lower band violation combined with volume surge enhances its significance as resistance-turned-support failure.
Volume-Price Relationship
Recent declines show volume conviction, with distribution days outnumbering accumulation. The Oct 10 sell-off occurred on 36% above-average volume, confirming bearish momentum. However, the absence of climactic volume (vs. the 31M peak in April) suggests selling pressure could persist. Recovery attempts require volume expansion above the 10M threshold for sustainability.
Relative Strength Index (RSI)
The 14-day RSI reads 28.6, entering oversold territory and nearing January 2025 reversal levels. While this may precede technical bounces, oversold conditions have persisted for 7 sessions during strong downtrends historically. The RSI divergence in late September (price lower highs vs RSI higher highs) failed to generate upside momentum, warranting skepticism about oversold signals amid strong bearish trends.
Fibonacci Retracement
Using the March 2025 high ($48.53) to October 2025 low ($42.30), key Fibonacci levels are traced. The current price tests the 78.6% retracement at $42.50. A decisive break could target full extension near $41.80. Significant confluent resistance emerges at the 61.8% level ($45.70), coinciding with the 50-day MA and September support breakdown point. The cluster of technical barriers near $45.50-$46.00 creates a critical recovery benchmark.
Multi-indicator confluence appears at the $44.30-$44.60 zone, where the 100-day MA, Bollinger midline, and 50% Fibonacci retracement converge – a likely area for sellers to defend. Notable divergence exists between oversold oscillators (RSI/KDJ) and trend-confirming indicators (MACD/MAs), suggesting potential for short-term technical bounce within a broader downtrend. Sustained trade below $42.30 may trigger accelerated selling, while recovery above $45.00 would require substantial volume confirmation to challenge the bearish structure.