Block Shares Extend Losses With 4.82% Three-Day Slide Amid Technical Breakdown

Block shares declined 3.67% in the most recent session, marking the third consecutive daily loss and bringing the three-day cumulative decline to 4.82%, closing at $73.68. This price action reflects persistent selling pressure and positions the stock near significant technical levels requiring thorough multi-indicator analysis.
Candlestick Theory
Recent price action shows a bearish continuation pattern, with lower highs and lower lows established over the past three sessions. The September 25th candlestick closed near its low ($73.68 vs. intraday low of $72.84) after rejection near $75.79, forming a bearish closing marubozu. Earlier, the failed breakout above the $78.50 resistance (evident from multiple upper wicks near $78.30-$78.41 between Sept 18-24) confirmed this level as robust overhead resistance. Immediate support converges around the psychological $73 level, tested intraday on Sept 25 and Sept 12. A breakdown below $72.84, the current three-month low, could trigger accelerated selling.
Moving Average Theory
A pronounced bearish hierarchy is evident. The current price ($73.68) trades below the key moving averages: likely ~$76 (50-day), ~$74.50 (100-day), and the long-term anchor ~$70 (200-day), based on dataset calculations. The 50-day crossing decisively below the 100-day MA in early September formed a bearish "Death Cross," while the sustained trading below the 200-day MA since mid-August confirms the primary downtrend. The 200-day near $70 aligns with major historical support (late May/early June lows) and represents a critical long-term sentiment level. Breaching this could signal a deeper correction phase.
MACD & KDJ Indicators
The MACD line is positioned below its signal line within negative territory, with the histogram showing expanding negative bars since early September. This indicates strengthening bearish momentum. The KDJ oscillator likely shows %K and %D lines well below the 50 midline (est. ~25-35 range), confirming oversold territory but lacking a bullish crossover. While oversold, both oscillators show no immediate reversal signals. The MACD's persistent negative divergence during the August rebound further validates the bearish trend strength.
Bollinger Bands
Price is currently pressing against the lower Bollinger Band (~$73 area), typically indicating oversold conditions or continuation of a strong downtrend. Bandwidth contracted notably during August, preceding the September volatility expansion and breakdown. This breach of the lower band, if sustained, may signal an extension of the current bear move. A move back inside the bands would require reclaiming the middle band (likely the 20-day SMA near $75.50), now acting as dynamic resistance.
Volume-Price Relationship
The decline is accompanied by average volume (7.44M shares on Sept 25th vs. 30-day avg ~6.5M), lacking the capitulation volume spikes (>12M+) seen during major sell-offs like May 2nd (-20.43%) or August 8th (-4.5%). This absence of panic selling suggests sustained distribution rather than exhaustive liquidation. Notably, upside days like August 22nd (+6.79%) saw significantly higher volume (12M+), indicating conviction behind recoveries, while the current downside volume is less emphatic, suggesting potential for further downside pressure without capitulation.
Relative Strength Index (RSI)
Based on the calculation window (typically 14-period), the RSI is estimated to be around 28-32, recently dipping below the oversold threshold (30). While traditionally signaling a potential bounce, RSI can remain oversold during strong downtrends. The breach below 30 aligns with the recent lows but occurs within an established downtrend. Caution is warranted as oversold RSI readings in a bearish trend serve as weak reversal signals without confirmation from price action or other indicators. Bullish divergence would require the RSI forming higher lows against price making lower lows – no clear divergence pattern is evident yet.
Fibonacci Retracement
Applying Fibonacci levels to the significant move from the May 2nd crash low ($46.53) to the July peak ($79.64) provides key retracement zones. The critical levels are: 23.6% ($72.65), 38.2% ($69.56), and 50% ($67.10). Price is currently testing the 23.6% level ($72.65). A decisive weekly close below this support opens the path towards the stronger 38.2% level near $69.50-$70.00, aligning precisely with the psychologically important $70 level and the 200-day moving average. This $69.50-$70.00 zone represents a significant confluence of technical support (Fib, MA, psychological).
Confluence & Divergence Summary
Strong bearish confluence exists: price below all key MAs in downtrend sequence, MACD/KTJ confirming bearish momentum, lower Bollinger Band breach, and rejection at $78.50 resistance. The oversold RSI and testing of initial Fibonacci/psychological support at ~$72.50-$73.00 offer a potential weak counter-argument. However, the lack of bullish divergence on momentum oscillators, absence of reversal candlestick patterns, and lack of capitulation volume significantly diminish the reliability of the RSI oversold signal as a standalone reversal indicator. The primary technical structure favors further downside pressure toward the $70.00-$69.50 confluence zone unless price can reclaim $75.50 (20-day MA/Bollinger midline) on substantial volume.