Celestica Plunges 21.51% on Bearish Signals as Technical Indicators Confirm Downtrend

Celestica (CLS) has experienced a sharp bearish trend over the past four sessions, with a cumulative decline of 21.51%. The most recent candlestick patterns suggest continued selling pressure, characterized by long lower shadows and bearish engulfing formations, particularly on December 17 and 16, 2025. Key support levels are emerging near the 266–275.83 range (December 17 low), while resistance clusters around 286.25–305.4 (December 16 high). A breakdown below 266 may trigger further short-term bearish momentum, though a rebound could test intermediate support at 247.75–250.91 (November 13–10 lows).
Moving Average Theory
The 50-day, 100-day, and 200-day moving averages (calculated from historical data) indicate a bearish alignment, with the 50-day MA significantly below the 200-day MA. The current price of 275.83 sits below all three averages, reinforcing the downtrend. Convergence of the MAs near the 300–310 range suggests a potential short-term consolidation phase, but a sustained close above this level is unlikely without a reversal in momentum.
MACD & KDJ Indicators
The MACD histogram has contracted sharply, with the line crossing below the signal line, signaling bearish momentum. The KDJ indicator shows stochastic divergence, with the %K line failing to confirm lower lows during the recent selloff, suggesting potential exhaustion in the downward move. However, both indicators remain in oversold territory (RSI <30), which may hint at a temporary bounce. A stochastic crossover above 20 could validate a short-term rebound, but a failure to break above 280 may reaffirm bearish control.
Bollinger Bands
Volatility has expanded as the price approached the lower Bollinger Band, consistent with a strong bearish bias. The band width contraction observed in late November 2025 (prior to the December selloff) preceded increased volatility, aligning with the recent price drop. The current position near the lower band suggests the trend may persist until a key support level (e.g., 266) is tested.
Volume-Price Relationship
Trading volume surged during the recent declines, particularly on December 17 and 16, validating the bearish move. However, volume has since moderated, which may indicate waning conviction in the downtrend. A divergence between volume and price action (e.g., lower volume on subsequent down days) could foreshadow a potential reversal, though this remains speculative without confirmation.
Relative Strength Index (RSI)
The 14-day RSI is in oversold territory (<30), suggesting potential for a rebound. However, the RSI has not formed a bullish divergence (price lows < RSI lows), reducing the probability of an immediate reversal. A close above 30 would be necessary to alleviate oversold conditions, but this is contingent on a shift in momentum.
Fibonacci Retracement
Applying Fibonacci retracement from the December 12 high (342.285) to the December 17 low (266) identifies key levels: 23.6% at ~302.98, 38.2% at ~286.25, and 61.8% at ~266. The current price of 275.83 is near the 38.2% retracement level, which may act as a short-term support/resistance. A breakdown below 266 could extend the decline toward the 247.75–250.91 range (November 13–10 lows).
Confluence and Divergences
Strong confluence exists between the bearish moving average alignment, MACD divergence, and Bollinger Band positioning, all supporting the continuation of the downtrend. The KDJ and RSI oversold readings may hint at a temporary bounce, but lack of volume confirmation and Fibonacci levels suggest this is more likely a retracement than a reversal. A critical test of the 266 support level will determine the next phase.