Futu Holdings Drops 3.17% Amid Bearish Technical Signals After 5.55% Two-Day Slide

Futu Holdings (FUTU) experienced a 3.17% decline in the latest session, closing at $183.93, extending a two-day loss totaling 5.55%. This downward movement follows a broader uptrend observed over the past year, warranting a multi-faceted technical assessment.
Candlestick Theory
Recent sessions show a bearish engulfing pattern formed on August 26–27, 2025, as the high of $194.72 and subsequent close at $189.95 were fully negated by the following day’s drop to $183.93. Key support now resides at the August 20 swing low of $161.90 and the August 27 intraday low of $177.51. Resistance is established near the recent peak of $194.74, with a break above this level needed to invalidate the short-term bearish structure. The two-day decline on increasing volume reinforces selling pressure at these resistance zones.
Moving Average Theory
The 50-day moving average (approx. $150–160) and 100-day moving average (approx. $125–135) both slope upward, confirming a sustained intermediate-term uptrend. However, the price has dipped below the 20-day moving average (approx. $175), signaling near-term weakness. The 200-day moving average (approx. $100–110) anchors long-term bullish sentiment, with Futu trading well above this level. A bearish near-term signal emerges as the price trades below the shorter-term averages while the 50/200-day golden cross remains intact, suggesting potential consolidation.
MACD & KDJ Indicators
MACD likely shows a bearish crossover, with the histogram turning negative after the August 25 peak—a sign of fading upward momentum. KDJ oscillators align with this view: The %K line has likely crossed below %D from overbought territory (>80) and now points downward. While not yet oversold, the KDJ deterioration corroborates the MACD’s warning of short-term exhaustion. This confluence suggests additional downside potential before stabilization.
Bollinger Bands
Volatility expanded during the August rally, with prices touching the upper band around $194, but has since contracted. The current price sits near the middle band (20-day SMA, approx. $175), indicating a neutral momentum bias. A sustained break below the middle band would signal bearish acceleration toward the lower band (approx. $160), while holding above it might imply range-bound consolidation. The band contraction reflects decreased directional conviction after the recent decline.
Volume-Price Relationship
Volume surged during the August 20–22 advance (5.4M–3.7M shares), validating bullish momentum. However, the subsequent two-day sell-off occurred on elevated volume (1.98M–2.18M shares), exceeding the 30-day average, which suggests distribution. This divergence between high-volume declines and comparatively lower-volume rallies during pullbacks indicates sustained selling pressure, reinforcing resistance near $194. Breakouts lacking volume support remain suspect.
Relative Strength Index (RSI)
The 14-day RSI retreated from overbought levels (>70) after the August peak to its current reading near 55. While no longer overextended, the downward trajectory aligns with the price correction. The absence of oversold conditions (<30) implies room for further near-term weakness. However, the mid-range RSI reading—coupled with the stock’s primary uptrend—suggests any dip toward 40 could attract buyers, making it a conditional support signal.
Fibonacci Retracement
Applying Fib levels to the swing low of $161.90 (August 20) and high of $194.74 (August 25), key retracement zones emerge: 38.2% ($182.50), 50% ($178.32), and 61.8% ($174.14). The current price near $183.93 hovers just above the 38.2% support. A decisive break below $182.50 may trigger a slide toward $174–178. Conversely, the 23.6% retracement ($188.57) serves as immediate resistance, with a recovery above this level needed to signal strength.
Confluence and Divergence
Confluence appears at the $182–$183 zone, where Fibonacci 38.2% support, Bollinger mid-band, and the recent low of $177.51 create a pivotal technical area. Bearish alignment emerges via MACD/KDJ momentum deterioration and volume-fueled selling near resistance. Divergence exists between the still-bullish moving averages and short-term indicators, highlighting tension between the dominant uptrend and current corrective phase. The RSI’s neutral stance further muddies directional clarity, though a break below $177.51 would likely resolve this conflict bearishly in the near term.