GE Vernova Shares Slide 3.41% Marking Third Straight Loss Amid Technical Breakdown

GE Vernova (GEV) concluded its most recent session at 607.52, declining 3.41% and marking the third consecutive day of losses, resulting in a cumulative 3-day drop of 5.72%. This recent weakness occurs within a broader context established by the one-year historical data, necessitating analysis through multiple technical lenses.
Candlestick Theory
Recent sessions display a concerning pattern. The significant up-day on 2025-09-22 (+3.24% closing near highs) was followed by three consecutive bearish candles with lower highs and lower lows, culminating in the recent 3.41% drop on higher volume. This sequence resembles an "Evening Star" pattern formation near previous resistance around 650-660, suggesting potential exhaustion of the prior upside. Key support levels are observed near the psychological 600 mark and more significantly around 580, aligning with prior congestion areas seen in late August and early September. Resistance remains firm near 650-660, where multiple highs were tested and rejected in August and September.
Moving Average Theory
The long-term 200-day moving average (approximately 420-430, rising slowly) continues to provide a solid support foundation for the primary uptrend. The 100-day MA (around 530-540) and the 50-day MA (near 590-600) are more critical near-term levels. Price is currently testing the 50-day MA (around 590-600), which previously acted as support in late August. A decisive break below this could accelerate selling towards the 100-day MA. However, the 50-day remaining above both the 100-day and 200-day MAs still signals an overall positive medium-term trend bias, though it is weakening with the current price test.
MACD & KDJ Indicators
The MACD (12,26,9 calculation implied) crossed below its signal line several days ago near the 650 high and is now approaching the zero line from above. This indicates increasing downward momentum and potential trend reversal confirmation if it crosses into negative territory. Concurrently, the KDJ oscillator has moved from overbought territory (>80%K) in late August/early September towards oversold territory (<20%K is approaching). While the %K and %D lines are falling sharply, signaling current weakness, the move towards oversold levels suggests the potential for a short-term bounce or consolidation may be nearing, though confirmation is required.
Bollinger Bands
The Bollinger Bands (20-period) contracted significantly ahead of the late September decline, indicating lowered volatility often preceding a sharp move. The subsequent breakdown saw price move below the 20-day moving average (mid-line) and towards the lower band. The bands are beginning to widen again, reflecting increased volatility on the downside. Price tagging the lower band suggests the current down move may be stretched short-term, potentially inviting a mean-reversion bounce towards the mid-line (20d SMA, near 620-625), but the primary pressure remains downward.
Volume-Price Relationship
Volume analysis shows distribution occurring near recent highs. The attempt to breach 650 on 2025-09-11 was met with very high volume selling (38.8M shares), while subsequent rallies lacked conviction. More significantly, the recent three-day decline, especially the last session (-3.41%), occurred on notably higher volume (3.16M shares vs. ~1.6-2.4M preceding) compared to the two prior down days, suggesting capitulation selling and validating the bearish momentum. Down days consistently exhibit higher volume than recent up days, reinforcing the selling pressure.
Relative Strength Index (RSI)
The 14-day RSI has retreated sharply from near-overbought levels (peaking near 70 in late August/early September) to its current reading near 40. This decline out of overbought territory preceded the recent price fall. While the RSI is not yet oversold (<30), the swift decline indicates significant loss of upside momentum. Continued selling could push the RSI below 30 in the near term, potentially signaling an oversold condition that might attract buyers, though price action confirmation is always crucial.
Fibonacci Retracement
Applying Fibonacci retracement to the major swing low (approx. 248.5 on 2024-10-02) and the swing high (666.15 on 2025-08-13) establishes key levels. The 0.236 retracement near 650 proved significant resistance in recent weeks. Price is now testing the 0.382 retracement level near 585. A breach below this level targets the 0.5 retracement near 457. Importantly, the psychological 600 level and the 50d MA converge near this initial Fibonacci support zone (580-585). Holding this zone is technically critical to maintain the medium-term uptrend structure; failure opens a path to deeper retracements.
Confluence points are significant. The resistance near 650 aligns with the 0.236 Fibonacci level and witnessed confirmed selling via high volume. Conversely, the current test at the 590-600 zone sees confluence between the 50d MA, the psychological 600 level, and approaching the 0.382 Fibonacci support (near 585). Bearish divergence is noted: the late August high (~666) and the late September lower high (~644-642) coincided with lower peaks forming on the RSI and MACD Histogram highs in late September compared to late August, foreshadowing waning momentum and the subsequent decline. The probability favors continued near-term pressure unless price convincingly reclaims the 50d MA and the 0.236 Fib level near 650, potentially signaled by bullish reversal candle patterns and improving momentum indicators.