Atlassian Stock Plunges 5.42% Amid Technical Breakdown And Heavy Selling Pressure

Atlassian (TEAM) experienced a 5.42% decline in its most recent trading session, extending a two-day losing streak with a cumulative 6.27% drop amid elevated volume. This downward momentum suggests intensified selling pressure as the stock approaches critical technical levels.
Candlestick Theory
The recent two-day decline formed consecutive bearish candles with lower highs and lows, confirming near-term distribution. Notable support appears at the psychological $200 level, where buyers defended prices during the last session. Resistance is established at $213.05 (previous day’s close), reinforced by the May 30th swing high of $207.98, creating a supply zone. A long lower shadow on June 11th ($200.92 low) signals tentative demand emerging near $200, though follow-through buying remains unconfirmed.
Moving Average Theory
The 50-day MA ($215.50) crossed below the 100-day MA ($221.80) in late May, triggering a bearish signal. Current trading below both averages confirms a short-term downtrend, while the 200-day MA ($235.60) maintains a negative slope overhead. This alignment—price below all three key averages—indicates sustained bearish dominance. Any recovery faces immediate resistance near the converged 50/100-day MAs at $215–222.
MACD & KDJ Indicators
MACD lines remain below the zero line with histogram bars extending negative territory, confirming bearish momentum acceleration. The KDJ oscillator shows the %K line (18) and %D line (24) deeply oversold, though both continue descending without positive divergence. While these levels typically warn of exhaustion, the absence of bullish crossovers or divergence suggests downward momentum may persist.
Bollinger Bands
Bands have expanded significantly during the two-day sell-off, reflecting surging volatility. Price pierced the lower band ($205) during the June 11th session before closing marginally above it, indicating potential technical exhaustion. Band expansion typically precedes consolidation, though sustained closes below $205 would reinforce bearish control. The $198–$205 zone represents critical support from April’s trough.
Volume-Price Relationship
Distribution days dominated the pullback with above-average volume, notably on June 5th (+3.64% rally) and June 11th (-5.42% drop), confirming institutional selling. Declining volume during minor rebounds like June 9th (+0.22%) signals weak conviction. This divergence between high-volume declines and low-volume rallies underscores unsustainable upward attempts amidst predominant selling pressure.
Relative Strength Index (RSI)
The 14-day RSI at 28.5 signals deeply oversold conditions, theoretically supporting a relief rally. However, RSI has remained below 40 throughout June without positive divergence, indicating persistent downside momentum. Historically, RSI can remain oversold during strong bearish trends, so this reading alone doesn’t guarantee reversal without confirming signals.
Fibonacci Retracement
The primary downtrend measured from February’s high ($325.99) to April’s low ($183.84) shows Atlassian failing to reclaim the 23.6% retracement level ($217.39) since early May. This resistance was reinforced by multiple rejection candles. The stock now tests the 0% retracement floor ($183.84), with interim support at the recent $200 swing low. A breakdown below $198 would invalidate Fibonacci support, exposing the $183–$185 zone.
Confluence Points & Divergences
Confluence at $200 combines Bollinger Band support, psychological price defense, and the Fibonacci 0% level, marking a critical technical pivot. Bearish agreement appears in MACD/KDJ’s unresolved negative momentum and volume-backed distribution. Notable divergence exists in RSI’s oversold warning lacking confirmation from reversal patterns or bullish crossovers. Should $200 fail, accelerated selling toward $183–$185 may materialize. Conversely, a volume-backed rebound above $207 could trigger short-covering toward $215 resistance.