Baker Hughes Extends Losses to 6.53% as Technical Indicators Signal Broad-Based Weakness

Baker Hughes (BKR) experienced a significant downturn in the most recent trading session, declining 3.42% to close at $43.51. This marks the fourth consecutive day of losses, resulting in a cumulative 6.53% drop over this period, indicating sustained selling pressure in the near term.
Candlestick Theory
Recent candlestick patterns reveal bearish momentum, with the latest four sessions forming a series of declining real bodies, culminating in a long red candle on August 1st that breached the $44.00 support level. This breakdown suggests conviction among sellers, with the next critical support emerging near the $42.50–$42.80 range (early July swing lows). Resistance is now established at $45.05–$45.55, corresponding to the July 30–31 consolidation zone and the 50-day moving average.
Moving Average Theory
The 50-day moving average ($45.90) has crossed below the 100-day MA ($44.20), confirming a bearish intermediate trend. The 200-day MA ($41.80) remains the primary long-term support, but the current price trading below all three major MAs (50/100/200) signals broad-based weakness. The widening gap between the 50-day and 200-day MAs reflects accelerating downside momentum.
MACD & KDJ Indicators
The MACD histogram prints deepening negative values, with the signal line diverging below the MACD line—a bearish acceleration signal. The KDJ oscillator shows the %K line (15) and %D line (20) entrenched in oversold territory (<20) but failing to trigger bullish crossovers. While this indicates extreme selling pressure, the lack of reversal signals suggests continuation risks remain elevated.
Bollinger Bands
Volatility has expanded as prices breached the lower Bollinger Band ($44.20) on August 1st after a period of band contraction in late July. The 2.2% band width (20-day) is now at its widest in three weeks, confirming heightened volatility. Sustained closes below the lower band may foreshadow an oversold bounce, but breach validation would signal extended downside toward the $42.50 support confluence.
Volume-Price Relationship
Distribution patterns are evident, with the four-day decline featuring above-average volume (avg: 8.2M shares vs. 7.3M on Aug 1). Notably, the July 23rd rally (+11.64%) occurred on heavy volume (21.8M shares), while subsequent pullbacks show elevated volume—classic distribution behavior. This volume asymmetry suggests institutional selling dominates recent price action.
Relative Strength Index
The 14-day RSI (27.6) has entered oversold territory, below the 30 threshold. However, this reading follows a progressive decline from mid-July’s overbought peak (RSI: 72), with no positive divergence yet detected. Historically, RSI readings below 25 have preceded short-term bounces, but current momentum may delay reversal confirmation.
Fibonacci Retracement
Applying Fib levels to the April-July rally (low: $34.77 on 2024-09-26; high: $46.79 on 2025-07-29) shows critical support confluence at the 61.8% retracement ($42.50), aligning with July’s swing lows. The 50% level ($45.00) now acts as resistance, while a break below $42.50 would expose the 78.6% retracement at $41.20. This zone ($41.20–$42.50) represents a high-probability reversal area given its alignment with the 200-day MA and volume profile support.
Confluence & Divergence Observations
Multiple indicators signal bearish confluence: the breakdown below $44.00 (candlestick), death cross (MA theory), and MACD/KDJ downtrends align with the Fibonacci 50% resistance. However, oversold readings from RSI and Bollinger Bands conflict with momentum indicators, creating a tension that may resolve through either consolidation or capitulation. Significant volume-driven support near $42.50 offers a potential reversal zone, where Fibonacci, moving average, and candlestick supports converge. Divergence appears between RSI oversold signals and MACD’s persistent bearish histogram, suggesting cautious interpretation of oversold conditions until bullish confirmation emerges.