Amrize (AMRZ) Plunges 5.22% on Two-Day Losing Streak as Bearish Signals Intensify

Amrize (AMRZ) fell 3.37% on the most recent session, marking a two-day losing streak with a cumulative decline of 5.22%. The stock has been trading in a bearish consolidation pattern, with recent price action suggesting potential exhaustion of short-term buyers. The last two candlesticks exhibit a bearish engulfing pattern, confirming downward momentum. Key support levels are likely forming around the 52.11–51.42 range (prior multi-week lows), while resistance remains at 55.41 (December 16 high). A breakdown below 52.11 may target 49.06, a critical psychological level from late November.
Candlestick Theory
The recent two-day bearish engulfing pattern indicates strong selling pressure, with the second candle (December 17) closing near its low at 53.54. This suggests a lack of buyers at lower levels, reinforcing the bearish bias. Support at 52.11 aligns with a prior multi-day consolidation base, and a breach here could trigger a test of the 49.06–48.06 zone. Resistance at 55.41 remains intact, with a failure to reclaim this level potentially extending the downtrend.
Moving Average Theory

The 50-day and 200-day moving averages (calculated from the 12-month data) are likely positioned below current levels, confirming a medium-term bearish bias. The 50-day MA crossing below the 200-day MA (death cross) in late November may have initiated the downtrend. Short-term traders should monitor the 50-day MA as a dynamic support; a close below this line could accelerate the decline. Conversely, a sustained rebound above the 100-day MA (approximately 52.50) may indicate a potential reversal.
MACD & KDJ Indicators
The MACD histogram has been shrinking since mid-December, signaling waning bearish momentum, but the MACD line remains below the signal line, supporting the downtrend. The stochastic oscillator (KDJ) shows the J line near oversold territory (<10), suggesting potential for a short-term bounce. However, the D line (slow signal) remains bearish, indicating caution against premature bullish bets. A divergence between the J line and price action (e.g., higher lows in J with lower lows in price) may foreshadow a reversal, though this requires confirmation.
Bollinger Bands
Volatility has contracted recently, with the bands narrowing between 52.00 and 55.50. This "calm before the storm" pattern may precede a breakout or breakdown. The current price of 53.54 sits near the lower band, suggesting oversold conditions. A break below the lower band could trigger a spike in volatility, while a rebound above the 55.00–55.41 range may signal a temporary consolidation phase.
Volume-Price Relationship
Trading volume has surged on the recent decline (3.55 million shares on December 17), validating the bearish move. However, volume has been mixed in prior sessions, with elevated levels during down days but subdued buying on up days. This asymmetry suggests weak conviction in the rally legs, reinforcing the bearish bias. A sudden spike in volume during a rebound could indicate short-covering or distribution, but sustained buying pressure remains absent.
Relative Strength Index (RSI)
The RSI has dipped below 30, entering oversold territory, but remains within a bearish channel due to the prolonged downtrend. While this may attract short-term buyers, the RSI’s failure to form higher lows suggests the trend is intact. A close above 40 could signal a minor retracement, but a sustained move above 50 would be required to confirm a reversal.
Fibonacci Retracement
Key Fibonacci levels from the recent high (56.74 on December 16) to the low (44.12 on August 7) include 50.43 (50% retracement) and 49.77 (61.8% retracement). The current price of 53.54 is above the 50% level, suggesting the downtrend may continue toward the 49.77–49.06 zone. A failure to hold above 50.43 could accelerate the decline toward the 38.2% level at 51.42.

The confluence of bearish candlestick patterns, oversold RSI, and contracting Bollinger Bands suggests a high probability of continued downward pressure in the near term. However, the stochastic oscillator’s oversold condition and potential Fibonacci support at 50.43 may provide short-term bounces. Divergences between MACD and price action remain inconclusive, but sustained volume during rallies could signal a shift in sentiment. Traders should closely monitor the 52.11 support and 55.41 resistance for directional clues.