Atlassian Stock Plunges 14.13% In Three Days Amid Heavy Selling Pressure

Atlassian (TEAM) concluded its most recent session with a 5.22% decline to $159.28, marking the third consecutive daily loss and a cumulative 14.13% drop over this period. This accelerated sell-off occurred on elevated volume of 5.29 million shares, underscoring intensified bearish sentiment. The analysis below employs multiple technical frameworks to contextualize this movement within the broader trend.
Candlestick Theory
Recent candlesticks exhibit a pronounced bearish sequence, characterized by three successive long red candles with lower highs and lower lows. The August 11 session printed a decisive bearish candle closing near its intraday low of $158.02 after testing $171.21, reinforcing strong selling pressure. This pattern suggests $158 establishes immediate support, while resistance converges at $168–$171 (recent swing highs). A breakdown below $158 could signal continuity of the bearish impulse, though a recovery above $171 may indicate short-term exhaustion.
Moving Average Theory
A bearish alignment persists across moving averages, with the 50-day SMA near $187, the 100-day SMA near $210, and the 200-day SMA near $230—all trending downward. The current price ($159.28) trades substantially below these key averages, confirming a sustained downtrend. The 50-day SMA’s decisive cross below the 200-day SMA (Death Cross) in late April 2025 further solidified bearish momentum. These averages now act as dynamic resistance layers, with any recovery requiring clearance above the 50-day SMA to challenge the dominant trend.
MACD & KDJ Indicators
The MACD histogram (-4.5) remains deep in negative territory, with the MACD line (-8.2) below its signal line (-3.7), signaling entrenched bearish momentum. KDJ oscillators corroborate this, with the K-line (18) and D-line (22) languishing near oversold thresholds. While both indicators reflect oversold extremes, neither shows bullish divergence relative to price—suggesting downward momentum may persist. However, a forthcoming bullish crossover in KDJ or MACD convergence could foreshadow a technical rebound.
Bollinger Bands
Bollinger Bands have widened markedly during the three-day sell-off, reflecting heightened volatility. Price consistently tests the lower band ($155–$162), typically an oversold signal, but the absence of reversal patterns implies bears retain control. Band expansion during the decline underscores accelerating downward momentum. For a reversal signal, price must reclaim the 20-day SMA (mid-band, near $175) and prompt band contraction.
Volume-Price Relationship
Volume trends validate bearish conviction, with the three-day decline occurring alongside above-average turnover (5.29M, 7.91M, and 6.74M shares versus the 30-day average of ~4.2M). This distribution pattern—rising volume on down days—implies institutional selling. The absence of accumulation signals near $158 suggests current support may be fragile. A reversal would necessitate declining volume on pullbacks and expanding volume on up days.
Relative Strength Index (RSI)
The 14-day RSI has plunged to 25, deep in oversold territory. While this could foreshadow a relief rally, its warning nature is notable: oversold conditions can persist during strong downtrends. The RSI has not diverged positively from price, limiting its utility as a standalone reversal signal. Traders should watch for RSI stabilization above 30 alongside price action for confirmation of bearish exhaustion.
Fibonacci Retracement
Applying Fibonacci retracement to the dominant downtrend from the February 28 peak of $325 to the current $158 low reveals critical levels. The 23.6% retracement ($207) was recently breached, transforming it into resistance. Subsequent barriers align with the 38.2% ($235) and 50% ($241.50) levels. This breakdown below $207 reinforces bearish control, with a sustained move below this level suggesting further downside toward psychological support at $150.
Confluence and Divergence Assessment
Confluence is evident in the unanimous bearish alignment: Moving averages, MACD, volume distribution, and Fibonacci positioning collectively endorse the downtrend. No significant divergences currently challenge this narrative—RSI and KDJ oversold readings align with price action, lacking bullish counter-signals. The sole potential inflection point exists at the $158 support, where oversold Bollinger Bands and RSI could amplify rebound attempts should buyers emerge. Nevertheless, the burden of proof lies with bulls to demonstrate strength through a decisive close above $168, accompanied by volume confirmation. Until such signals materialize, technical structure favors downside continuation with $150 as the next probabilistic target.