Dominion Energy (D) Drops 3.72% on Three-Day Losing Streak as Bearish Crossover and Oversold RSI Signal Extended Downtrend

Dominion Energy (D) has experienced a sharp correction, with a 3.72% decline on the most recent session, extending a three-day losing streak marked by a cumulative 4.81% drop. This downward momentum is evident in the candlestick pattern, where bearish dominance is reinforced by lower highs and lower lows. Key support levels are forming around the recent closing price of $57.22, while resistance appears at $59.43, where prior attempts to rebound failed. The structure suggests a potential continuation of the bearish trend, though a rebound from the $57.22 level could trigger short-term consolidation.
Moving Average Theory
The 50-day moving average (approximately $58.50) has crossed below the 100-day and 200-day moving averages, signaling a bearish crossover. The 200-day MA, currently near $57.50, acts as a critical psychological support level. Price action below this threshold confirms a medium-term downtrend, with the 100-day MA (around $59.00) offering resistance. The alignment of the short-term MA below long-term MAs reinforces the likelihood of further declines until a reversal is triggered by a sustained break above the 50-day MA.
MACD & KDJ Indicators
The MACD histogram has turned negative, with the MACD line crossing below the signal line, indicating bearish momentum. Concurrently, the KDJ (Stochastic) oscillator shows oversold conditions, with the %K line dipping below 20 and crossing the %D line. This divergence between the bearish MACD and the oversold KDJ suggests a potential short-term reversal, though confirmation is needed via a bullish crossover in the KDJ or a rejection at key support levels. The absence of overbought readings (RSI <70) further supports the likelihood of a rebound from current levels.

Bollinger Bands
Volatility has expanded, with the price near the lower Bollinger Band ($57.00), indicating extreme bearish pressure. The band’s width suggests heightened volatility, and a rebound from the lower band could trigger a mean reversion. However, the recent contraction in band width prior to the selloff implies a potential breakout, though the direction remains uncertain without a clear break above the middle band ($58.50). The current positioning near the lower band aligns with the oversold KDJ readings, suggesting a possible short-term bounce.

Volume-Price Relationship
Trading volume has surged during the selloff, with recent sessions averaging 7–10 million shares traded. This volume validates the bearish move, as increased participation supports the sustainability of the downtrend. However, the lack of volume expansion during potential rebounds (e.g., the 12/17–12/19 rally) suggests weak buying interest. A volume spike on a reversal bar near $57.22 could confirm a short-covering rally, while a continuation of high-volume declines would reinforce the bearish case.
Relative Strength Index (RSI)
The 14-day RSI has fallen below 30, confirming oversold territory. While this historically suggests a potential bounce, the absence of a bullish divergence (price lows below RSI lows) weakens the signal. The RSI’s failure to rebound above 40 without a corresponding price rally increases the risk of further declines. Traders should monitor for a break below the 25 level, which could trigger algorithmic buying or short-term profit-taking.
Fibonacci Retracement
Key Fibonacci levels are derived from the recent high of $62.77 (11/28) and low of $57.22 (12/22). The 38.2% retracement level ($59.75) and 50% level ($60.00) now act as potential resistance. The current price near $57.22 aligns with the 61.8% retracement level ($58.00), suggesting a possible support zone. A break below $58.00 would target the 78.6% level ($56.50), but a sustained rebound above $60.00 could invalidate the bearish scenario.
Conclusion
Confluence between the oversold RSI, bearish MACD, and Fibonacci support at $57.22 suggests a high probability of short-term consolidation or a rebound. However, divergences in the KDJ and the absence of a bullish price-volume confirmation introduce uncertainty. A break above $59.43 (prior resistance) would signal a potential reversal, while a test of $56.50 (Fibonacci 78.6%) would confirm a deeper correction. Traders should prioritize risk management, as volatility and divergences between momentum indicators highlight the need for caution.