BEKE Plunges 4.99% As Bearish Technicals Signal Further Downside Risk

BEKE experienced a significant downturn of 4.99% in the most recent session, closing at 18.48. This sharp decline warrants a multi-faceted technical analysis of the stock's behavior.
Candlestick Theory
The recent price action shows a bearish engulfing pattern forming between July 10 and July 11, where the large red candle (high: 19, close: 18.48) completely consumed the prior green candle (close: 19.45). This signals strong selling pressure near the psychological $19 resistance. Notable support lies at $17.70 (May 23 low), while resistance remains firm at $19.50 (tested multiple times in July). A bearish pin bar on July 1 also preceded the current downtrend.
Moving Average Theory
The 50-day MA (approximated at $19.15) crossed below the 100-day MA (~$19.80) in late June, confirming a bearish crossover. Price currently trades below all key moving averages (50/100/200-day), with the 200-day MA near $20 acting as major resistance. The alignment of shorter averages below longer ones confirms a sustained bearish trend structure.
MACD & KDJ Indicators
MACD lines remain below the zero line with histogram bars extending negatively, reinforcing bearish momentum. KDJ shows the K-line (21) and D-line (32) in oversold territory but without bullish crossover confirmation. This divergence suggests weak reversal potential despite oversold readings. The July 11 sell-off occurred as KDJ exited overbought territory after the July 10 surge.
Bollinger Bands
Price breached the lower band ($18.20) on July 11 during high volatility expansion. Bandwidth spiked 38% after the July 10-11 range extension, signaling elevated bearish momentum. Prior band contraction in late June preceded the breakdown, validating the volatility squeeze pattern. Sustained trading below the 20-period midline ($18.75) reinforces downside bias.
Volume-Price Relationship
The July 11 decline occurred on 6.25M shares—higher than the 30-day average but below the distribution volume of July 10 (9.89M shares). Bearish volume confirmations include the July 15 sell-off (9.84M shares at -5.63%) and April 17 drop (11.29M shares at -1.70). Low volume during June recovery rallies undermined their sustainability.
Relative Strength Index (RSI)
Daily RSI at 36 approaches oversold territory but remains above the critical 30 threshold. Notably, RSI failed to breach 60 during June rally attempts, reflecting persistent bearish momentum. Monthly RSI (42) shows no divergence from price, suggesting no imminent trend reversal. Traders should monitor for oversold rebounds near RSI 30 with volume confirmation.
Fibonacci Retracement
Applying Fib levels between the March 17 high ($25.09) and June 6 low ($18.63), key retracement zones emerge. The 38.2% level ($21.20) rejected prices in early June, while the 50% level ($21.86) capped the April rally. Current price tests the 78.6% retracement support near $18.25. A decisive break below exposes the June low, while recovery must reclaim the 61.8% level ($19.60) to signal trend reversal.
Confluence and Divergence
Strong confluence exists at $18.20-18.50, combining Bollinger support, Fib retracement, and psychological support—breaching this zone could accelerate selling. Bullish divergence appears in declining volume during July dips versus higher distribution volumes in June, suggesting weakening downside momentum. However, MACD-KDJ synchronization and MA alignment overwhelmingly favor bearish continuation. Probable downside targets include the May swing low of $17.70, though oversold RSI and Bollinger penetration warn of potential near-term consolidation.