Argenx Extends Slide With 7.45% Five-Day Drop As Support Nears $630

argenx (ARGX) declined 3.46% in the most recent session, extending its losing streak to five consecutive days with a cumulative 7.45% drop, closing at $638.90 after trading between $631.47 and $651.10 on elevated volume of 662,512 shares. This persistent downward momentum establishes $630 as immediate psychological support, while resistance now emerges near $670-$675, aligning with recent swing highs.
Candlestick Theory
Recent price action exhibits a clear bearish pattern sequence. The stock formed a bearish engulfing candle on August 4th after peaking at $691.02, followed by five consecutive red candles with progressively lower highs and lows. The extended downswing suggests strong selling pressure, with the $630 support being critical after multiple intraday tests. Failure to hold this level could trigger accelerated declines toward the $600 psychological barrier.
Moving Average Theory
The 50-day moving average (~$605) converges with the 100-day MA (~$585) above the rising 200-day MA (~$555), preserving the structural uptrend. However, the recent breakdown below the 50-day MA and accelerating descent signals short-term bearish momentum. While the primary trend remains intact given the stacked MA configuration, sustained trade below the 50-day MA increases downside risk toward the 100-day support.
MACD & KDJ Indicators
MACD lines completed a bearish crossover below the zero line on August 6th, with the histogram expanding negatively – the most pronounced bearish momentum signal in three months. KDJ corroborates this weakness, with the K-line plunging from overbought territory (>80) to 20. This aggressive reset implies downside exhaustion is nearing, though neither oscillator shows divergence to suggest imminent reversal. Traders should monitor for bullish MACD crossovers or KDJ reversals above 20.
Bollinger Bands
The bandwidth expanded sharply during the July 31st breakout (+11.93%), but price rejection near the upper band triggered contraction and descent to the lower band ($635). This compression-expansion sequence denotes elevated volatility. Current trading near the lower band suggests oversold conditions, increasing rebound potential. A sustained break below the lower band would signal bearish continuation.
Volume-Price Relationship
The July 31st rally occurred on the year’s highest volume (1.38M shares), validating that breakout. Conversely, the recent decline saw volume diminish until August 11th, when selling intensified (662K shares). This capitulation-style volume near technical support hints at exhaustion. Any reversal would require confirming volume exceeding the 10-day average (~500K shares) to demonstrate buyer conviction.
Relative Strength Index (RSI)
The 14-day RSI plummeted from overbought (73) to 35 within 10 sessions – the fastest momentum reset since May. While approaching oversold territory, historical data shows ARGX’s RSI can remain depressed (<40) for extended periods during corrections. Current RSI dynamics suggest more consolidation is likely before stabilization, though oversold divergences would strengthen reversal prospects.
Fibonacci Retracement
Applying Fib levels to the 38.2% swing from the June 30th low ($510.06) to the July 31st high ($689.13) reveals critical thresholds. The 23.6% retracement ($635) has been breached intraday, shifting focus to the 38.2% level ($620.80) as the next support. Notably, this converges with the volume profile’s high-density node at $615-$620. Below this, the 50% retracement ($599.60) offers stronger support.
Confluence & Divergence Observations
Confluence appears at the $615-$620 support zone, where Fibonacci 38.2%, volume accumulation, and the rising 100-day MA converge. This area offers a high-probability bounce candidate if tested. Bearish divergence manifested as MACD failed to confirm the July 31st price high. Presently, momentum and price align without divergence, suggesting downward pressure may persist until RSI nears oversold territory. Watch for MACD histogram improvement or KDJ reversal crosses as early reversal signals.