Beigene Stock Plunges 9.69% In Two Days As Death Cross Signals Bearish Momentum

Beigene (ONC) closed at 241.23 on June 27, 2025, marking a 5.21% single-day decline and a 9.69% two-day drop, reflecting intensified bearish pressure after failing to sustain gains above key technical levels.
Candlestick Theory
Recent price action shows consecutive long bearish candles on June 26–27, with June 27’s candle closing near its low (239.51–246 range). This pattern confirms seller dominance following a failed bullish harami on June 24–25. Critical support now converges at the psychological 240 level, aligning with April’s base near 228–230. Resistance firms between 254–255, reinforced by the June 20–23 consolidation failure and overhead supply from the 50-day moving average.
Moving Average Theory
The 50-day MA (currently 252) crossed below the 100-day MA (246) in late June, triggering a death cross that signals mid-term bearish momentum. Price rejection at the descending 50-day MA on June 26 highlights its resistance strength. With the closing price now below both the 50-day and 100-day MAs, and the 100-day trending downward, the structure favors continued downside pressure. Lack of 200-day MA coverage (due to data constraints) limits long-term context.
MACD & KDJ Indicators
MACD exhibits bearish alignment, with the signal line maintaining divergence below the MACD line since early June. Histogram bars show accelerating negative momentum. KDJ reinforces this weakness: The %K (11) and %D (18) are deeply oversold but lack bullish crossover confirmation. This divergence between KDJ’s oversold reading and sustained price decay signals unresolved downside risk, though capitulation may be near.
Bollinger Bands
Bands contracted markedly in mid-June, preceding the current volatility expansion. Price pierced the lower band (237) on June 27, typically indicating oversold conditions. However, the band expansion direction (downward-sloping 20-day MA) and failure to reclaim the lower band intraday suggest follow-through selling is likely toward the 230–232 support area. A close above 248 would signal mean reversion potential.
Volume-Price Relationship
Distribution days dominate recent activity, with June 26–27 volume (414k and 366k shares) exceeding the 30-day average, validating bearish momentum. Notably, the June 12 rally to 284.51 recorded the year’s highest volume (724k), establishing that peak as a distribution zone. Current volume intensity remains below that threshold, suggesting sellers are not yet exhausted. Reversal confirmation would require volume expansion on upside days.
Relative Strength Index (RSI)
The 14-day RSI (28) resides in oversold territory (<30), historically correlating with short-term bounces (e.g., April’s rally from 228.14 occurred at RSI 32). However, the current oversold condition lacks bullish divergence, as RSI makes lower highs alongside price. While suggestive of exhaustion, RSI alone warrants caution—prolonged sub-30 readings occurred during February and March.
Fibonacci Retracement
Applying Fib levels to the April 14 low (228.95) and June 12 high (284.51), the 78.6% retracement at 240.5 aligns precisely with June 27’s intraday low (239.51). A decisive break below 240 targets the 100% retracement at 228.95—a level confluent with April’s swing low and the 2025 base. Upside recovery must clear the 61.8% level (251.3) to invalidate the bearish trajectory.
Confluence and Divergence
Confluence of bearish signals is pronounced: Death cross formation, MACD/KDJ momentum deterioration, and Fibonacci breakdown at 240.5 collectively reinforce downside bias. Divergence emerges in oscillators: KDJ and RSI oversold extremes contrast with unrelenting price weakness, warning of a potential technical bounce—though volume and moving average resistance near 248–252 must be overcome for reversal validation. Probable next supports are 239.5 (psychological) and 229 (structural), with upside capped at 254–255 absent volume-backed recovery.