Eversource Energy Extends Losses 3.47% Amid Bearish Technical Signals

Eversource Energy (ES) experienced a 3.21% decline in its most recent session, extending its losing streak to two consecutive days with a cumulative drop of 3.47%. This occurred on elevated volume of 2.99 million shares, underscoring intensified selling pressure at current levels.
Candlestick Theory
Recent sessions reveal a bearish engulfing pattern formed on September 15–16, where a modest decline (65.52 close) was followed by a pronounced down candle (63.42 close) that consumed the prior day’s body. This pattern signals weakening bullish momentum near the $65.50–66.50 resistance zone, which has capped prices multiple times since late August. Key support now emerges at $63.30–63.40, where price stabilized in early September, with a breach potentially opening a path toward the $62.00–62.60 area. The absence of reversal patterns like hammers or piercing lines suggests continued near-term vulnerability.
Moving Average Theory
The 50-day SMA (approximately $64.20) recently crossed below the 100-day SMA (near $64.80), triggering a "death cross" that typically signals intermediate-term bearish momentum. Price currently trades below both the 50-day and 100-day SMAs, reinforcing downward pressure. The 200-day SMA (around $62.80) provides a critical long-term support level; sustained trading below this level would indicate a broader trend deterioration. Confluence exists at $63.00–63.30, where the 200-day SMA aligns with horizontal support.
MACD & KDJ Indicators
The MACD histogram remains negative, reflecting bearish momentum dominance despite a brief convergence during the September 12 rally attempt. The KDJ oscillator’s recent bearish crossover (K-line dipping below D-line from overbought territory) aligns with the two-day selloff. While KDJ’s sub-50 reading suggests waning momentum, it has not yet reached oversold extremes (<30). MACD’s failure to sustain a bullish crossover during the mid-September rebound indicates underlying weakness, though a positive divergence could emerge if price stabilizes while momentum improves.
Bollinger Bands
Bollinger Band width expansion during the September 15–16 selloff reflects heightened volatility and directional conviction. Price closed near the lower Bollinger Band (~$63.00), typically signaling oversold conditions. However, persistent closes below the lower band would suggest acceleration of the downtrend. A contraction in volatility preceded the recent breakdown, consistent with Bollinger’s "squeeze" pattern that often precedes significant moves.
Volume-Price Relationship
The most recent decline occurred on the highest volume in two weeks (2.99M shares), confirming bearish conviction. Notably, the August 25 breakdown (-4.72%) saw volume spike to 6.01M shares—a multi-month high—marking institutional distribution. Recent rallies (e.g., September 11–12) lacked commensurate volume expansion, undermining their sustainability. Volume patterns overall validate bearish price action, with distribution days (high volume on declines) outnumbering accumulation.
Relative Strength Index (RSI)
The 14-day RSI holds at 46, in neutral territory but down sharply from 55 a week ago. It has not registered oversold (<30) since the August selloff. The current reading does not yet indicate capitulation, though its downward trajectory suggests momentum favors sellers. While oversold RSI readings can precede rebounds, their absence here—combined with price breaking key supports—warrants caution against premature reversal assumptions.
Fibonacci Retracement
Using the swing low of $56.16 (December 18, 2024) and high of $66.62 (July 25, 2025), key retracement levels include 23.6% ($64.15), 38.2% ($62.62), and 50% ($61.39). The current price ($63.42) breached the 23.6% support and now approaches the 38.2% level at $62.62. Confluence exists near $62.60–62.80, where the 38.2% Fibonacci aligns with the 200-day SMA—a critical defensive zone for bulls. A failure here opens risk toward the 50% retracement at $61.39.
Confluence and Divergence
Confluence of bearish signals appears at the $65.50 resistance, validated by the bearish engulfing pattern, moving average resistance, and volume-backed rejection. A critical support confluence emerges at $62.60–62.80, combining the 38.2% Fibonacci, 200-day SMA, and July consolidation lows. A notable divergence exists between price action and RSI: while price established a lower high in September relative to August, RSI peaked at a lower level (75 in August vs. 55 in September), suggesting weakening upside momentum before the breakdown. The absence of MACD bullish convergence during the September rebound further reinforced this divergence.