Venture Global Shares Fall 7.96% on Bearish Engulfing Pattern Death Cross as $8.80–$8.90 Support Looms

Venture Global (VG) experienced a significant 7.96% decline in its most recent trading session, closing at $9.02. This sharp reversal follows a recent rally marked by bullish candlestick formations, including a hammer pattern on January 28 and a morning star on January 23. Key support levels are forming near the $8.80–$8.90 range, while resistance is evident at $9.30–$9.80. The bearish engulfing pattern on February 2 suggests short-term bearish momentum, though the prior consolidation in the $9.00–$9.50 range may offer a floor for potential rebounds.

Candlestick Theory

The recent bearish engulfing candle on February 2, with a large real body and minimal upper shadow, confirms a breakdown from a key resistance level. This pattern, combined with the prior bullish divergence in the $8.80–$9.00 range, indicates a potential continuation of the downtrend. However, the absence of a decisive break below $8.80 may trigger a retest of this support, creating a potential bullish reversal setup if buyers emerge.

Moving Average Theory

Short-term moving averages (50-day at ~$9.50, 100-day at ~$9.30) have crossed below the 200-day MA (~$9.70), forming a bearish “death cross” configuration. The current price sits well below all three averages, reinforcing the downtrend. A recovery above the 50-day MA may signal a temporary pause, but sustained action above the 200-day MA is unlikely without a broader reversal in sentiment.

MACD & KDJ Indicators

The MACD histogram has turned negative, with the MACD line crossing below the signal line, confirming bearish momentum. The KDJ (Stochastic) indicator shows an oversold reading (25/50), suggesting potential near-term exhaustion in the decline. However, the KDJ’s failure to form a bullish divergence (price lows < oscillator lows) weakens the case for an immediate reversal.
Volatility has expanded sharply, with the price testing the lower Bollinger Band ($8.80). The recent contraction in mid-January (between $9.40–$9.60) now appears as a false breakout, with the bands widening to reflect heightened uncertainty. A rebound above the middle band ($9.30) may test the upper band ($9.80), but this would require a surge in buying pressure.

Volume-Price Relationship

Trading volume spiked on the February 2 session (10.6M shares), validating the bearish breakdown. However, volume has since declined, suggesting waning conviction in the downtrend. The lack of follow-through selling below $8.80 may indicate short-term profit-taking or fading of the bearish signal, though sustained volume above average levels would be needed to confirm a durable downtrend.

Relative Strength Index (RSI)

The RSI has fallen to 28, entering oversold territory, but remains below critical levels for a definitive reversal signal. A close above 35 would suggest a short-term bounce, while a retest of 30 without a price new low could hint at a bottoming process. However, in a strong downtrend, RSI can remain depressed for extended periods, so caution is warranted.

Fibonacci Retracement

Key Fibonacci levels from the recent high ($10.05) to the low ($8.80) include 61.8% at $9.13 and 78.6% at $8.98. The current price near $9.02 suggests a potential test of the 78.6% level as a support zone. A break below $8.98 may target the 88.6% extension at $8.80, aligning with prior support.

Confluence points include the oversold RSI, bearish engulfing pattern, and 78.6% Fibonacci level converging near $8.80–$8.90, which may act as a short-term floor. Divergences between the KDJ and price action (e.g., lower lows in price without corresponding oscillator lows) suggest caution about premature reversals. While the technical bias remains bearish, a rebound into the $9.10–$9.30 range could offer a strategic entry point for contrarian traders, provided volume and momentum indicators confirm strength.