BEKE Stock Drops 3.11% to $18.38 as Bearish Indicators Signal Prolonged Downtrend

BEKE fell 3.11% to close at $18.38 on October 7, 2025, continuing its recent downward trajectory. Over the past year, the stock has oscillated between a high of $25.09 (March 17, 2025) and a low of $16.38 (January 13, 2025), establishing key reference points for technical analysis. The following assessment integrates multiple indicators without visual aids, focusing on their confluence and divergences.
Candlestick Theory
Recent candlesticks show a bearish pattern, with the October 7 session closing near its low ($18.38 vs. intraday low $18.28) following a failed rally attempt on October 6 (high $19.05). This confirmed a breakdown below the psychological $19.00 level and the September 23 swing low ($18.73). Lower highs since September 29 ($20.65) signal sustained selling pressure. Immediate resistance is now established at $19.01 (October 7 high), with major resistance near $19.36–$19.84 (October 1 high and September 30 high). Support converges around $18.28 (October 7 low), aligning with the August 27 low of $17.70 for a potential floor.
Moving Average Theory
The 50-day and 200-day moving averages exhibit a confirmed bearish "death cross," with the 50-day MA ($19.40 approximate) positioned below the 200-day MA ($20.10 approximate). Both remain above the current price, reinforcing the long-term downtrend. Short-term averages (e.g., 20-day MA near $18.90) slope downward, suggesting persistent selling momentum. The price trading below all key MAs signals entrenched weakness, though proximity to the 78.6% Fibonacci level (discussed later) may induce consolidation.
MACD & KDJ Indicators
The MACD histogram is entrenched in negative territory, though its rate of decline has moderated slightly in recent sessions, hinting at potential bearish exhaustion but not reversal confirmation. KDJ readings (K=15, D=22, J=8 approximate) entered oversold territory (<20) on October 7, with J-values at extreme lows. While this may foreshadow a short-term bounce, it remains countertrend within the dominant downward channel. No bullish divergence is observed between price and KDJ/MACD.
Bollinger Bands
Bands expanded significantly during the September 30 high-volume decline (-5.99%), reflecting volatility surge. The October 7 close ($18.38) near the lower band ($18.28 approximate) suggests ongoing bearish control but aligns with historical support zones. Band contraction has yet to materialize, indicating unresolved directional pressure. A sustained break below the lower band would intensify selling, while consolidation could foreshadow volatility normalization.
Volume-Price Relationship
Downside volume surged on September 30 (10.82 million shares) but has since diminished, with October 7 volume (4.02 million) at its lowest in ten sessions. This divergence—reduced volume during continued declines—suggests waning selling momentum and may signal near-term exhaustion. However, absence of notable bullish volume confirms lack of buyer conviction, rendering sustainability of any recovery doubtful.
Relative Strength Index (RSI)
The 14-day RSI reads 28.5 as of October 7, sliding further into oversold territory (<30). This marks the fifth consecutive session below 40, indicating prolonged bearish momentum. Crucially, no bullish RSI divergence is visible despite price testing new local lows—price and RSI continue making lower lows. Historical RSI reactions near 30 have produced only ephemeral bounces (e.g., June 30, August 28), warranting caution against premature reversal assumptions.
Fibonacci Retracement
Applying Fib levels to the primary uptrend from $16.38 (January 13, 2025) to $25.09 (March 17, 2025):
- 78.6%: $18.25
- 100%: $16.38
The current price ($18.38) breached the 78.6% retracement ($18.25) intraday but closed marginally above it, indicating critical support. A secondary analysis of the recent swing high ($20.65, September 29) to swing low ($17.74, June 30) similarly identifies $18.36 (78.6%) as pivotal. Confluence of these levels adds technical significance to the $18.25–$18.38 zone.
Confluence and Conclusions
Multiple indicators converge at the $18.25–$18.38 zone: the 78.6% Fibonacci retracement, Bollinger Band lower boundary, and oversold KDJ/RSI readings. This signals a high-probability support region where a technical bounce may occur. However, the dominant trend remains bearish, evidenced by moving average alignment, MACD confirmation, and absence of bullish divergences. Volume patterns suggest selling exhaustion but no accumulation. Sustained trade below $18.25 would target the $17.70–$17.74 swing lows, while recovery hinges on reclaiming $19.36 to invalidate the lower-high structure. Given indicator agreement on near-term oversold conditions but longer-term bearish structure, cautious monitoring for reversal signals near $18.25 is warranted, though countertrend trades carry elevated risk.