Edwards Lifesciences Drops 1.44% Amid Double-Top Bearish Pattern

Edwards Lifesciences (EW) declined 1.44% in the latest session, closing at 75.8 on elevated volume of 7.55 million shares, reflecting increased selling pressure near key technical levels.
Candlestick Theory
Recent candlestick patterns suggest bearish momentum. The stock failed to sustain above the 77.0 resistance after forming near-identical highs around 77.54–77.57 on 2025-07-21 and 2025-07-23, establishing a double-top pattern. The subsequent two bearish candles confirmed rejection at this resistance, with the latest session closing near its low (75.8), reinforcing near-term downside bias. Key support rests at 75.39 (July 24 low), followed by the 73.50–74.00 zone, which previously capped advances in May–June 2025.
Moving Average Theory
The 50-day, 100-day, and 200-day moving averages exhibit a neutral-to-bearish convergence. Price currently trades below the 100-day MA (approximately 76.50), while the 50-day MA (approximately 75.50) is flattening beneath it—a potential bearish "death cross" precursor. The 200-day MA (approximately 70.80) remains the primary bull/bear demarcation. Failure to hold above the 50-day MA suggests weakening medium-term structure.
MACD & KDJ Indicators
The MACD histogram shows sustained negative momentum, with the signal line crossing below the MACD line on July 16 and extending divergence through July 24. Concurrently, the KDJ oscillator’s %K (42) and %D (48) are bearishly sloping after exiting overbought territory (>80) on July 11. While no oversold signal is present, the tandem deterioration in both oscillators reinforces downside continuity. A bullish reversal would require MACD histogram recovery and KDJ cross above 30.
Bollinger Bands
Volatility expansion is evident, with the bandwidth widening 15% during July’s failed rally. Price currently tests the lower band near 75.50, typically indicating oversold conditions. However, a close below this band—absent a volume spike reversal—may accelerate selling. The July 16–24 contraction/breakdown cycle suggests bears dominate near-term volatility control. Upper band resistance converges with the 100-day MA near 76.80.
Volume-Price Relationship
Distribution signals dominate, with the 20-day volume average (5.2M shares) exceeded during both the July 10 advance (4.3M shares) and the July 24 decline (7.55M shares). This divergence—higher volume on down days—undermines rally sustainability. The critical July 14 high (78.805) formed on below-average volume (3.78M shares), highlighting weak conviction. Support validation requires volume expansion on rebounds.
Relative Strength Index (RSI)
The 14-day RSI (42) resides in neutral territory after retreating from overbought (74 on July 10). The current reading implies room for further downside before oversold signals (<30) emerge. Note the bearish divergence: July price highs near 78.8 coincided with lower RSI peaks than June’s 78.22 high (RSI 70). Such negative divergence preceded July’s pullback and may extend.
Fibonacci Retracement
Applying Fib levels to the rally from the 2024-07-25 low (58.93) to the 2025-07-14 high (78.805) reveals critical thresholds. The 23.6% retracement (75.30) aligns with the July 24 low—a pivotal support. Breach here targets the 38.2% level (71.80), coinciding with the 200-day MA. A 50% retracement (68.87) would engage the March–April 2025 consolidation zone. The 61.8% level (66.00) offers major long-term support if bearish momentum escalates.
Confluence and Divergence Observations
Confluence exists at 75.30–75.50 (23.6% Fib, Bollinger lower band, and 50-day MA), making it a decisive support. MACD/KDJ synchronization and volume confirmation strengthen bearish signals, while RSI divergence warns of weakening momentum. Divergence exists between moving averages (neutral-bearish) and the still-sloping-up 200-day MA (long-term bullish), creating tactical ambiguity. A sustained break below 75.30 likely triggers accelerated selling toward 71.80, whereas recovery above 76.50 (100-day MA) may invalidate immediate bearishness.