Celestica Rises 1.04% in Recovery After 6.87% Plunge

Celestica (CLS) gained 1.04% on the latest session, closing at $237.79, marking its second consecutive day of gains with a 1.76% advance over this period. This recovery follows a sharp 6.87% decline on 2025-10-03, reflecting ongoing volatility. Below is a technical assessment of CLS using the prescribed framework.
Candlestick Theory
The recent price action shows a potential bullish reversal pattern taking shape. The 2025-10-03 session formed a long red candle (high: $249, low: $231.44) signaling strong selling pressure, but subsequent days printed two consecutive green candles with higher lows ($233.82 → $230.24) and a close above $237. This suggests buyers are defending the $230-233 zone as immediate support. Resistance is evident near $250, where multiple rejections occurred in early October, with a more significant barrier at the September peak of $257.64.
Moving Average Theory
The 50-day, 100-day, and 200-day moving averages exhibit a sustained long-term uptrend, with all three sloping upward and the shorter-term MAs above longer-term ones. However, the current price ($237.79) has retreated below the 50-day MA (est. ~$240) after breaking down sharply on 2025-10-03. This breach hints at near-term bearish momentum, though the price remains well above the rising 200-day MA (~$170), affirming the broader bullish structure. A decisive close above the 50-day MA could signal trend resumption.
MACD & KDJ Indicators
MACD is likely in a bearish crossover, with the signal line above the MACD histogram following the early October selloff. This indicates fading upward momentum. Meanwhile, KDJ readings suggest an oversold rebound is underway: The %K line appears to be hooking upward after recently dipping below 20, signaling oversold conditions. While KDJ’s recovery aligns with the two-day price bounce, MACD’s bearish posture implies skepticism. A confirmed MACD reversal would strengthen the case for sustained upside.
Bollinger Bands
Bollinger Bands widened significantly during the October volatility spike, reflecting elevated uncertainty. Price recently tested the lower band (~$230), which coincided with support and triggered the current rebound. The bands may now enter a contraction phase if volatility subsides. A close above the midline (~$242) would signal bullish momentum recovery, while failure to hold $230 could retest the lower band. The squeeze at current levels implies a pending directional breakout.
Volume-Price Relationship
Volume surged to 3.69 million shares on the 2025-10-03 selloff, confirming distribution. Recent rebounds (2025-10-06 and 2025-10-07) occurred on lower volume (1.86M–3.08M shares), raising sustainability concerns. However, the 2025-10-06 session’s long lower wick and green close despite above-average volume indicate absorption of selling pressure. A volume uptick on further gains would validate buyer conviction.
Relative Strength Index (RSI)
The 14-day RSI has recently dipped near 30 (calculated approximation: ~33), approaching oversold territory but avoiding extreme readings. This aligns with KDJ’s oversold signal and the subsequent bounce. While RSI divergence was absent during the September peak, its current recovery from near-oversold levels supports short-term bullish potential. However, RSI remains below 50, reflecting residual bearish momentum that warrants caution until it sustains above this midline.
Fibonacci Retracement
Using the swing low of $230.24 (2025-10-07) and the recent high of $257.64 (2025-09-23), key Fibonacci levels emerge. The 38.2% retracement ($247.1) capped gains on 2025-10-02, while the 23.6% level ($243.4) stalled advances on 2025-10-06. Confluence exists at the 50% retracement ($244), aligning with the 50-day MA. A break above this zone could target $250 (61.8%). Conversely, failure at the 23.6% level risks revisiting the $230 swing low.
Confluence and Divergence Notes
Confluence is observed at $230–$233 (candlestick support, Bollinger lower band, and recent swing low) and $243–$244 (Fibonacci 23.6% + 50-day MA). Divergence exists between KDJ’s oversold rebound signal and MACD’s bearish stance, suggesting cautious optimism. Volume divergence on the rebound also tempers confidence. Overall, the setup hints at a tentative recovery, but sustained trade above $244 is critical to negate near-term bearish pressure.