Brookfield Rebounds 4.11% After 36.24% Plunge As Technical Support Holds At $43

Brookfield (BN) rose 4.11% in the latest trading session, closing at $44.80 after a dramatic 36.24% decline on 2025-10-10, establishing critical technical levels that shape the current analysis framework.
Candlestick Theory
The 10/10 session formed a decisive bearish marubozu candle closing near its low ($43.03), establishing immediate resistance at $45.47. The subsequent 10/13 hammer pattern with a low of $43.81 and close at $44.80 signals tentative bullish reversal confirmation, with solid support now evident at $43.00. This price action reflects consolidation after the severe downturn, with $45.00–45.50 acting as a critical resistance zone needing breach for sustained recovery.
Moving Average Theory
The 50-day, 100-day, and 200-day moving averages now slope steeply downward, with all three positioned between $60–$65—well above the current price near $44. This configuration confirms a dominant bearish trend. The recent collapse has forced the 50-day MA below both longer-term averages, reinforcing negative momentum. Until Brookfield sustains closes above the 50-day MA (currently near $62), the long-term trajectory remains decisively bearish.
MACD & KDJ Indicators
MACD shows deep negative territory after the sharp breakdown, though the histogram exhibits tentative narrowing on 10/13, hinting at slowing bearish momentum. KDJ readings—previously oversold below 10—have rebounded to K:25/D:21, indicating short-term momentum recovery without yet triggering bullish crossovers. Both oscillators suggest potential stabilization but require stronger confirmation to signal reversal viability.
Bollinger Bands
Bands expanded sharply during the 10/10 breakdown, reflecting high volatility capitulation. Price remains below the lower band ($47.50 approximate), but 10/13’s rejection of lows near $43.81 aligns with band extremity, suggesting exhaustion. A close inside the bands (mid-band ~$55) would signal volatility normalization, while continued lower-band tests risk resuming the downtrend.
Volume-Price Relationship
The 10/10 sell-off occurred on elevated volume (3.14M shares vs. 1.7M prior), validating downside momentum. The 10/13 recovery saw increased volume (2.75M shares), suggesting conviction near the $43 support. Sustained volume expansion above 3M shares would be needed to confirm accumulation during any rebound phase.
Relative Strength Index (RSI)
RSI plunged to extreme oversold readings near 10 post-breakdown. Despite the 4.11% gain, current RSI (approximated at 28) remains below the 30 oversold threshold. While this warns of depressed sentiment, its recovery trajectory has been weak; decisive bullish reversal would require RSI sustaining above 35 alongside price confirmation.
Fibonacci Retracement
Using the $68.63 high (10/09) and $43.00 low (10/10), key retracement levels emerge: 23.6% ($49.05), 38.2% ($52.79), and 61.8% ($58.84). The 10/13 high ($45.00) failed to challenge the 23.6% barrier, making $49 the immediate technical target. Confluence exists at $49–50, where the 23.6% Fib aligns with breakdown-gap resistance and the Bollinger lower band.
Confluence Points & Divergences
Notable confluence appears at $43 support, validated by candlestick rejection, volume confirmation, and Bollinger band extremity. Divergences exist between RSI/KDJ improvement and bearish MA alignment, reflecting unresolved trend conflict. Crucially, the Fibonacci 23.6% level ($49.05) aligns with the resistance gap from $45.47–50.00; clearance here would activate bullish reversals across momentum indicators. Until this zone breaches, consolidation within $43–49 is likely.