Woodside Energy Slides 3.49% Amid Bearish Technical Signals And Oversold Conditions

Woodside Energy (WDS) declined 3.49% in the most recent session, closing at 16.06 after trading between 16.035 and 16.34. This significant daily drop establishes the foundation for our technical assessment.
Candlestick Theory
The recent price action shows a bearish engulfing pattern formed on September 12th, where the candle’s body completely swallowed the prior day’s bullish candle. This occurred near the resistance zone of 16.65–16.67, which aligns with the August 28th high. Immediate support emerges at 16.00–16.03 (September 12th low), with a major support floor at 15.50–15.55, coinciding with the April swing low and August consolidation base.
Moving Average Theory
The 50-day MA (approximately 16.40) crossed below the 100-day MA (16.20) in early September, confirming a bearish intermediate trend. The 200-day MA (15.80) provides longer-term support, but the current price trading below all three moving averages reflects sustained downward pressure. The alignment now shows the 50-day < 100-day < 200-day, signaling a fully bearish hierarchy.
MACD & KDJ Indicators
The MACD histogram remains entrenched in negative territory, with the signal line dominating the MACD line since late August. Concurrently, the KDJ oscillator shows %K and %D both near 20, indicating oversold conditions. However, these signals lack bullish divergence; the KDJ’s persistent depression without price recovery suggests momentum remains skewed to the downside despite oversold readings.
Bollinger Bands
Bollinger Bands have expanded notably in September, reflecting heightened volatility. The price consistently hugs the lower band, last observed at 16.00. While this often precedes mean-reversion bounces, the absence of bullish reversal candles and the band expansion’s persistence indicate continued downside momentum may prevail before stabilization occurs.
Volume-Price Relationship
The 3.49% decline on September 12th was accompanied by higher volume (799,739 shares) than the preceding up days, confirming distribution. Volume spikes have consistently validated downside moves since late August, including the August 19th sell-off (volume: 1,643,133), undermining confidence in rallies lacking equivalent volume support.
Relative Strength Index (RSI)
The 14-day RSI reads 29, technically oversold (<30). Historically, similar RSI troughs in April and July aligned with short-term bounces. However, oversold RSI levels are unreliable reversal signals during strong trends—like the current one evidenced by cascading lower highs. This warrants caution against premature reversal assumptions.
Fibonacci Retracement
Retracing the upswing from the April low (11.50) to the August high (17.68), key Fibonacci levels become significant. The 38.2% retracement (15.35) and 50% level (14.59) offer potential downside targets. Confluence exists at the 38.2% level with the psychological 15.50 and the 200-day MA, strengthening its relevance as a pivotal support zone.
Confluence and Divergence
Confluence is observed in bearish signals: the MA death cross aligns with MACD negativity and volume-backed breakdowns. Divergence appears in oversold oscillators (RSI, KDJ) not yet catalyzing a rebound, suggesting weakening downside momentum may be developing. This creates a tension requiring price confirmation: a close above 16.35 (recent resistance) would support recovery potential, while failure at 16.00 likely triggers a test of 15.50–15.35.
In summary, Woodside Energy exhibits entrenched bearish momentum with cautionary oversold signals. The convergence of Fibonacci support, the 200-day MA, and volume-backed demand near 15.50 offers a critical technical floor. Traders should monitor for reversal confirmation above 16.35 or breakdown continuation below 16.00 to gauge the next directional commitment.