Futu Holdings Extends Losses to 6.12% as Technical Indicators Signal Persistent Bearish Pressure

Futu Holdings (FUTU) experienced a 0.38% decline in the latest session, closing at $167.09 and extending its losing streak to two consecutive days, with a cumulative drop of 6.12%. This recent weakness underscores the need for a multi-faceted technical assessment of its price trajectory.
Candlestick Theory
The recent price action reveals a bearish continuation pattern. Following a 2.34% advance on 2025-09-19 (closing at $177.99), FUTU formed two consecutive bearish candles with significant declines of 5.77% and 0.38% on 2025-09-22 and 2025-09-23, respectively. The latter session established resistance near $170.20, while support materialized around $165.89–$166.33. This consolidation below the $170 psychological barrier suggests persistent selling pressure, with a decisive break below $165 potentially accelerating declines.
Moving Average Theory
FUTU’s trend structure reflects bearish near-term dynamics. The 50-day moving average (hovering near $175–$180) has crossed below the 100-day MA (around $160–$165), signaling weakening intermediate momentum. Current trading below both averages reinforces a negative bias, though the 200-day MA near $125–$130 maintains an upward slope, indicating a longer-term uptrend remains intact. The convergence of price below these key averages heightens downside risks.
MACD & KDJ Indicators
The MACD histogram shows a persistent negative divergence, with the signal line dominating since mid-September—reflecting increasing bearish momentum. Concurrently, KDJ oscillators entered oversold territory (sub-20) during the recent sell-off but have not yet triggered bullish crossovers. This alignment implies weak buying interest, though KDJ’s oversold readings suggest a technical rebound could materialize if sentiment shifts.
Bollinger Bands
Volatility expanded notably during the September decline, with the price breaching the lower Bollinger Band (20-day SMA near $173 ± 2σ) on elevated volume. This extension typically precedes mean-reversion opportunities, but the subsequent failure to reclaim the mid-band confirms the breakdown’s validity. The bands’ ongoing expansion indicates elevated volatility risks, leaving FUTU susceptible to further downside if $165 support fails.
Volume-Price Relationship
Volume trends corroborate the bearish trajectory. The 5.77% decline on 2025-09-22 recorded 4.01 million shares—the highest daily volume in over a month—validating conviction behind the sell-off. Subsequent sessions saw diminishing volumes (2.12–2.12 million shares), implying reduced capitulation but insufficient demand to reverse the downtrend. This divergence warns that rallies lacking volume support may be unsustainable.
Relative Strength Index (RSI)
The 14-day RSI hovers near 30, edging toward oversold territory. Using the RSI formula \[RSI = 100 - (100 / (1 + Average Gain / Average Loss))\], recent declines have sharply reduced the average gain component. However, oversold RSI readings in downtrends often precede temporary bounces rather than reversals. While the current RSI suggests exhaustion, it should be weighted against trend confirmation from other indicators.
Fibonacci Retracement
Applying Fibonacci levels to the uptrend from the 2024-09-24 low ($71.79) to the 2025-09-19 high ($178.06), key retracement supports emerge at $162.77 (23.6%), $154.59 (38.2%), and $124.93 (61.8%). The recent rejection near the 23.6% level ($162.77) aligns with the $165.89–$166.33 horizontal support. A breach below $162.77 could catalyze a descent toward the 38.2% retracement.
Confluence and Divergence Observations
Confluence of bearish signals is evident: price trading below key MAs, MACD sustaining negative territory, and volume validating breakdowns. The oversold RSI and KDJ readings offer mild contrarian signals but lack confirmation. A notable divergence exists between elevated downside volume and potential exhaustion near Fibonacci support—warning that a breakdown below $162.77 could trigger accelerated selling.
In summary, Futu Holdings exhibits technical deterioration across multiple indicators, with resistance firmly established near $170. While oversold conditions may prompt short-term stabilization, the burden of proof remains on bulls to reclaim moving averages and volume-backed momentum. A sustained break below $162.77 would signal a deeper corrective phase toward $154.59–$150.93.