Celestica Extends Slide With 3.71% Drop As Technicals Signal Bearish Momentum

Celestica (CLS) declined 3.71% to close at $196.64 on August 14, 2025, extending its losing streak to two consecutive sessions with a cumulative 7.88% decline. The stock has retreated from its recent high of $213.45 on August 12, signaling a potential shift in near-term momentum. Below is a comprehensive technical assessment based on multiple indicators.
Candlestick Theory
Recent sessions show a distinct reversal pattern. The August 12 peak at $213.45 formed a bearish shooting star, followed by two successive long red candles with highs near $218.80 and $200.50. This sequence confirms resistance around $213-$219 and establishes critical support at $192.13 (August 14 low). A break below $192 could trigger further downside toward the $180 psychological barrier, while recovery above $200 needs confirmation to alleviate selling pressure.
Moving Average Theory
The 50-day moving average (~$155) continues trending upward, indicating persistent intermediate bullishness. However, the price has breached the 20-day dynamic support ($205), signaling near-term weakness. Long-term moving averages (100-day at ~$140, 200-day at ~$100) remain in bullish sequence below the price. Sustained trading below $192 would challenge the 50-day MA, which may act as a crucial inflection point for trend continuation or reversal.
MACD & KDJ Indicators
MACD exhibits a bearish crossover below its signal line, with the histogram expanding negatively, confirming accelerating downward momentum. Concurrently, the KDJ indicator shows the %K line (currently ~25) plunging from overbought territory above 90, now converging with the %D line in oversold territory. This confluence indicates strong selling pressure but warns of potential exhaustion near-term. A MACD reversal signal would strengthen recovery prospects.
Bollinger Bands
Price action has pierced the lower Bollinger Band ($193), coinciding with a band expansion during the recent decline. This volatility spike suggests trend acceleration, with the lower band now acting as immediate resistance-turned-support. Failure to reclaim the lower band may extend losses toward $182 (measured move of the band width). Band contraction following this volatility expansion could signal a consolidation phase.
Volume-Price Relationship
Volume surged to 4.23 million shares during the August 14 sell-off, significantly exceeding the 30-day average. This distribution pattern validates bearish momentum. Conversely, the August 12 rally to $213.45 occurred on below-average volume (2.72 million), indicating weak conviction behind the breakout attempt. Sustained high volume on down days reinforces resistance near $200-$205.
Relative Strength Index (RSI)
The 14-day RSI has collapsed to 29, entering oversold territory from overbought conditions (>70) in early August. This sharp decline reflects aggressive profit-taking. While historically RSI readings below 30 have preceded technical bounces, the current vertical descent suggests momentum remains to the downside. A divergence (higher low in RSI against lower price low) would strengthen reversal prospects.
Fibonacci Retracement
Using the rally from the March 2025 low of $56 to the August 2025 high of $213.45, key retracement levels emerge: 23.6% ($172), 38.2% ($153), and 50% ($135). Current price action resides above the 23.6% support. A breakdown below $182 (near the 14.6% level) could accelerate losses toward $172. Confluence exists at $172 where Fibonacci, VWAP support, and the 100-day MA converge.
Confluence & Divergence
Multiple indicators corroborate bearish near-term bias: volume-confirmed breakdown below $200, MACD/KDJ momentum deterioration, and volatility expansion below Bollinger Bands. Divergences are nascent but notable; RSI’s oversold reading conflicts with the KDJ’s persistent downtrend, suggesting possible exhaustion. Fibonacci and moving average support near $172 offers a high-confluence zone for potential stabilization. A decisive break below $192 would likely extend the correction toward $172-$180, while recovery above $206 would invalidate immediate downside risks.