Woodside Energy Shares Plunge 6.11% As Bearish Indicators Dominate Technical Outlook

Candlestick Theory
Woodside Energy's recent price action exhibits a pronounced bearish pattern, with four consecutive declining sessions culminating in a 6.11% drop. The most recent candle (August 19, 2025) closed at 16.6 after testing intraday support at 16.31. This level now serves as critical short-term support, having halted the current descent. Immediate resistance is established at 17.7, the August 13 peak. The extended lower wick on the August 19 candle may hint at tentative buying interest near 16.31, though sustained trade below 17.4 resistance (recent breakdown point) confirms bearish control. Key psychological support resides at 16.00, aligning with the July 18 low of 15.75.
Moving Average Theory
The 50-day moving average (16.80) recently crossed below the 100-day MA (16.75), signaling deteriorating medium-term momentum. Both remain above the rising 200-day MA (15.50), preserving the longer-term uptrend. However, the current price (16.6) trades below all three key MAs, with the 50/100-day bearish crossover indicating near-term weakness. This alignment suggests consolidation pressure may persist unless the price reclaims the 50-day MA. The 200-day MA continues to provide foundational support, reflecting resilience in the broader trend despite recent declines.
MACD & KDJ Indicators
The MACD histogram resides in negative territory, with the signal line dominating the MACD line—a classic bearish configuration. This divergence implies ongoing downward momentum. Meanwhile, the KDJ oscillator shows %K at 20.86 (approaching oversold territory), while %D lingers near 30. This proximity to oversold levels suggests potential exhaustion in selling pressure but lacks definitive reversal signals. Caution is warranted as MACD’s bearish stance conflicts with KDJ’s oversold hint, indicating unresolved directional uncertainty.
Bollinger Bands
Price volatility has expanded sharply, with the August 19 close piercing the lower Bollinger Band (set at 20-day SMA ±2σ). This breach typically signals oversold conditions, often preceding a technical rebound. However, the band expansion itself reflects elevated bearish momentum, which may delay recovery. A close back inside the bands would be necessary to signal stabilization. Bandwidth expansion from prior contraction underscores rising volatility risks, supporting cautious near-term sentiment.
Volume-Price Relationship
Notable distribution occurred during the sell-off, with August 19 volume (1.34 million shares) doubling the 30-day average. This high-volume decline confirms bearish conviction and undermines price sustainability. Conversely, upside volume during the prior rally (e.g., August 13’s 467k shares on a 0.63% gain) was comparatively muted, suggesting weak buying participation. Volume divergence during advances versus declines reinforces the current bearish bias.
Relative Strength Index (RSI)
The 14-day RSI reads 41.4, hovering near neutral territory but trending downward. While not yet oversold (<30), its trajectory suggests building bearish momentum. Notably, it diverges from KDJ by avoiding oversold signals, which may indicate that downward pressure has room to extend. RSI’s failure to breach 50 during recent rallies further reflects persistent selling interest, requiring caution in interpreting oversold bounces.
Fibonacci Retracement
Using the swing low of 15.75 (July 18) and high of 17.7 (August 13), key Fibonacci levels highlight 16.95 (38.2%), 16.73 (50%), and 16.50 (61.8%). The current close (16.6) breached the 50% level but closed above the critical 61.8% retracement at 16.50. This level now acts as pivotal support—a sustained break below 16.50 would open risk toward the 78.6% level (16.17). Confluence with Bollinger’s lower band near 16.30 amplifies this support zone’s technical significance.
Concluding Synthesis
Multiple indicators converge at the 16.30–16.50 support zone, including Bollinger’s lower band, Fibonacci 61.8% retracement, and the recent intraday low. KDJ’s near-oversold reading and Bollinger band penetration hint at potential technical rebound opportunities. However, bearish confirmation from volume patterns, MACD, and RSI—along with the decisive break below key moving averages—suggests downward pressure may persist. Traders should monitor the 16.30 support closely; its failure could accelerate losses toward 16.00, while a recovery above 16.95 (38.2% Fibonacci) may signal short-term stabilization. Divergence between momentum oscillators (MACD/RSI vs. KDJ) warrants cautious interpretation of reversal signals.