Equinor Drops 4.36% As Bearish Momentum Breaks Key Support Levels

Equinor (EQNR) declined by 4.36% in the most recent session, closing at NOK 23.7, breaking below key technical levels as bearish momentum intensified.
Candlestick Theory
The recent price action reveals critical bearish patterns. The most recent session formed a long-bodied red candle closing near its low after breaking below the NOK 24.10 support from August 28. This follows a sequence of small-bodied candles indicating indecision, culminating in a decisive breakdown. Resistance is now established between NOK 24.50 (previous swing low) and NOK 24.90 (August 25-29 consolidation), while immediate support emerges at NOK 23.50 (May 30 low) and NOK 23.00 (May 19 pivot).
Moving Average Theory
The moving average configuration exhibits a strong bearish trend. The 50-day MA (currently near NOK 24.90) has crossed below both the 100-day MA (approximately NOK 25.10) and 200-day MA (around NOK 24.70), confirming a death cross pattern. With the current price trading below all three moving averages, the alignment suggests entrenched downward momentum. The widening gap between shorter and longer-term averages indicates accelerating selling pressure.
MACD & KDJ Indicators
Both momentum oscillators reflect oversold conditions without clear reversal signals. The MACD histogram shows increasing negative momentum, with the signal line firmly above the MACD line. The KDJ indicator (particularly the %K line) is probing oversold territory near 20, but without a bullish crossover of %D. This divergence from extreme oversold readings may suggest bearish exhaustion, though no reversal confirmation exists yet.
Bollinger Bands
Volatility expansion is evident as the price breached the lower Bollinger Band (20-day, 2SD) at NOK 23.80, closing near NOK 23.70. The band width has expanded 18% over the past week, signifying accelerating selling pressure. While this breach typically signals oversold conditions, the failure to reclaim the lower band intraday may imply further downside. A contraction in band width would be necessary to signal stabilization.
Volume-Price Relationship
Volume analysis validates bearish momentum. The 5.49 million shares traded during the breakdown session represent a 117% increase over the 30-day average, confirming conviction behind the selloff. However, volume on subsequent down days (e.g., August 26) was relatively muted, suggesting selling pressure may lack sustainability. A close above NOK 24.00 with expanding volume would be needed to signal reversal potential.
Relative Strength Index (RSI)
The 14-day RSI has plunged to 28, entering oversold territory. This reading coincides with the breakdown below the NOK 24.10 support. Historically, RSI readings below 30 in March and May preceded short-term bounces, though the current momentum is more severe. Caution is warranted as sustained readings below 30 could indicate continuation rather than reversal. Traders should await bullish divergence for confirmation.
Fibonacci Retracement
Applying Fibonacci levels to the July 29 high (NOK 27.06) and the September 3 low (NOK 23.685), critical retracement levels are identified. The 23.6% level at NOK 24.48 aligns with the August 26 swing low, now serving as initial resistance. Deeper resistance emerges at NOK 24.97 (38.2%) and NOK 25.37 (50%). Confluence exists between the 23.6% Fib level and the 100-day MA near NOK 24.50, strengthening its resistance significance.
Confluence & Divergence
Key confluences reinforce the bearish outlook: the breakdown below both the NOK 24.10 horizontal support and the 200-day MA, accompanied by high-volume confirmation and oversold but non-divergent RSI/MACD readings. A notable divergence exists between price making new lows and volume remaining below the August 6 capitulation event (9.9M shares), potentially hinting at reduced selling conviction. However, the overwhelming technical confluence suggests sustained bearish control, with any recovery attempts likely capped near NOK 24.50 absent fundamental catalysts.