Amcor Plunges 11.87% On Heavy Volume As Bearish Indicators Converge

Amcor (AMCR) experienced a significant 11.87% decline in its most recent session, closing at 8.76 after trading between 8.50 and 9.47 on notably high volume of 93.19 million shares. This sharp drop establishes the immediate context for the technical analysis below, which evaluates key indicators across the required framework.
Candlestick Theory
The recent session formed a decisive bearish marubozu candle, closing near its low after breaking below the 9.00 psychological support and the consolidation range of 9.64–9.95 observed in the preceding week. This pattern suggests strong selling momentum, with the 8.50 low now acting as immediate support. Resistance is evident at 9.47 (prior session high), while the 9.77–9.95 zone from mid-August constitutes a stronger resistance cluster. A close below 8.50 may trigger further bearish continuation.
Moving Average Theory
The 50-day SMA (~9.65), 100-day SMA (~9.85), and 200-day SMA (~10.00) are all in bearish alignment above the current price. The sustained trading below these key averages since early August confirms a downtrend, with the 50-day crossing below the 200-day around late July—a "death cross" reinforcing bearish sentiment. The widening gap between shorter and longer-term averages indicates accelerating downward momentum, with no imminent reversal signal.
MACD & KDJ Indicators
The MACD histogram shows deepening negative momentum, with the signal line diverging further below zero after a bearish crossover in early August. Concurrently, the KDJ oscillator (using standard 9-period settings) registers deeply oversold territory, with the K-line at 18 and D-line at 22. While this oversold reading suggests potential exhaustion, no bullish crossover or divergence is evident. The KDJ’s failure to exit oversold during bounces since late July indicates persistent selling pressure.
Bollinger Bands
Price has breached the lower Bollinger Band (20-day SMA at ~9.60, bands at ±2σ), trading at 8.76 against a lower band near 9.00. This deviation marks an extreme volatility expansion—the widest band spread in three months. Historically, such deviations preceded short-term mean-reversion bounces, but failure to reclaim the lower band within one session may indicate continued downside. The band expansion itself reflects accelerating bearish momentum.
Volume-Price Relationship
The 93M shares traded during the 11.87% drop dwarfed the 30-day average volume (~22M), confirming strong capitulation. Volume spikes on down days since late July have consistently validated bearish breaks, while rebounds (e.g., August 7th +2.44%) saw muted volume, undermining their sustainability. This volume profile supports further downside absent a high-volume reversal pattern.
Relative Strength Index (RSI)
The 14-day RSI collapsed to 11, deeply below the oversold threshold of 30 and approaching historic lows. While this reading implies extreme bearish exhaustion, its occurrence during a vertical decline without bullish divergence warrants caution. Prior oversold bounces in June and July only achieved 50–55 RSI before failing, indicating weak recovery momentum. Traders should treat the current reading as a warning signal rather than a standalone reversal trigger.
Fibonacci Retracement
Using the swing high of 9.95 (August 13) and swing low of 8.50 (August 14), key retracement levels are 8.84 (23.6%), 9.05 (38.2%), and 9.23 (50.0%). The close below 8.84 leaves no immediate Fibonacci support until 8.50. A broader retracement drawn from the 11.44 yearly high (August 2024) to the 8.50 low shows critical resistance at 9.43 (38.2%) and 9.97 (50.0%), aligning with the moving average cluster.
Confluence & Divergences
Multiple indicators converge to underscore bearish dominance: The close below all key moving averages, MACD acceleration downward, volume-confirmed breakdown, and RSI/KDJ oversold extremes (without divergence) collectively signal entrenched selling pressure. Notable divergence is absent, though Bollinger Band overshoot and RSI extremity suggest elevated short-term reversal risk. However, any bounce would require clearance of 9.00 and the 8.84 Fibonacci level to gain technical significance.