Charter Communications Extends Slide With 25% Three-Day Plunge As Technicals Worsen

Charter Communications (CHTR) closed at $298.27, declining 3.71% to extend its losing streak to three sessions, with a cumulative 25.08% drop over this period. Below is a technical synthesis of its recent price action integrated with historical patterns.
Candlestick Theory
Recent sessions exhibit pronounced bearish momentum. The July 25 session formed a decisive long red candle (open: $335.52, close: $309.75) after breaking key support near $380. This was followed by two continuation candles, confirming selling pressure. A critical support zone now emerges around the July 28 low of $296.37, while the psychological $300 level and the July 25 gap-down resistance ($309.4–$335.52) present immediate upside barriers. Sustained trade below $296 may trigger further downside.
Moving Average Theory
The price resides significantly below key moving averages, signaling entrenched bearish bias. Current levels ($298) sit under the 50-day MA (~$370), 100-day MA (~$360), and 200-day MA (~$350). This configuration—where price breaches all major MAs with shorter averages below longer ones—implies structural weakness. A recovery above the 200-day MA would be needed to suggest trend reversal potential.
MACD & KDJ Indicators
MACD maintains a bearish trajectory, with the signal line diverging negatively below the zero line since early July. The July 25 plunge intensified histogram downside momentum. Meanwhile, the KDJ oscillators are deeply oversold (K and D persistently below 20), yet without bullish crossover confirmation. While oversold, both indicators lack reversal signals, underscoring prevailing downward momentum.
Bollinger Bands
Heightened volatility is evident in the bands' pronounced expansion following the July 25 breakdown. Price currently trades near the lower band (~$295), often a temporary support in downtrends. However, failure to rebound from this region may signal extended weakness. The bandwidth expansion emphasizes directional conviction, while a future contraction could precede consolidation.
Volume-Price Relationship
July 25’s sell-off featured extraordinary volume (9.64M shares vs. 30-day avg ~2M), validating capitulation. Subsequent declines occurred on diminishing volume, suggesting exhaustion may develop. Nonetheless, the absence of high-volume reversal candles implies continued bearish control. Resistance tests require volume confirmation to be credible.
Relative Strength Index (RSI)
The 14-day RSI at 22.3 reflects deeply oversold conditions. Historically, similar extremes (e.g., 24.8 on July 15) preceded minor rebounds, but did not arrest the downtrend. While oversold, RSI’s warning of potential exhaustion should be weighed against the lack of bullish divergence or trendline breaks.
Fibonacci Retracement
Using the April peak ($437.06) and current low ($296.37), key retracement levels emerge: 38.2% ($350), 50% ($367), and 61.8% ($384). Recent rejection near $350 (July 15–18 consolidation) reinforced this resistance. The 78.6% retracement aligns with critical support at $300. A breach below $296 invalidates this level, potentially targeting $287–$275.
Confluence & Divergence Notes
Confluence reinforces resistance near $315–$350 (Fibonacci, moving averages, and gap resistance) and support around $295–$300 (psychological level and Bollinger lower band). Divergences are minimal: oversold RSI and KDJ readings contrast with sustained price weakness, though without confirmation signals. The July 25 volume spike and MA alignment substantiate bearish momentum, requiring cautious interpretation of oversold oscillators.
Overall, Charter displays robust technical deterioration. While oversold indicators hint at possible consolidation, a decisive break below $295 may accelerate declines. Reversals necessitate sustained reclamation above $315 with volume backing, a scenario not currently evidenced. Risk remains skewed downward barring fundamental catalysts.