Haleon Shares Drop 3.16% Amid Bearish Technical Signals And Resistance Rejection

Haleon (HLN) closed at £11.05 in the most recent trading session, a decline of 3.16%, setting a bearish tone for this technical assessment. The following analysis examines key indicators without visual outputs, focusing on interpretative patterns derived from the dataset.
Candlestick Theory
Price action shows a significant bearish reversal pattern near the £11.42 resistance level established on 2025-06-02. The most recent session formed a long red candle closing near its low (£11.05), following a green candle that tested the £11.42 high. This suggests rejection at resistance, with immediate support visible at £11.00 (psychological level) and secondary support at £10.67 (May low). A decisive break below £11.00 may signal further downside momentum.
Moving Average Theory
The 50-day moving average (approximately £10.80) sits above the 100-day (£10.20) and 200-day (£9.60) averages, confirming a primary uptrend. However, the current price is testing the 50-DMA after its sharp decline. Sustained trading below this level could indicate short-term trend deterioration, while holding above £10.80 maintains bullish structure alignment with longer-term averages.
MACD & KDJ Indicators
MACD shows convergence nearing a bearish crossover, as the MACD line (short-term momentum) approaches the signal line from above following the recent sell-off. KDJ registers overbought conditions with the K-line (79) crossing below the D-line (82) from elevated territory. This divergence suggests waning upward momentum and potential near-term consolidation, though absolute levels remain above the 70 overbought threshold.
Bollinger Bands
Volatility expansion occurred during the rally to £11.42, with price touching the upper band. The subsequent rejection pushed price below the 20-period moving average (£11.20), indicating a shift toward bearish control. Band contraction since early May suggests reducing volatility, which may precede directional resolution. Current positioning near the midline implies balanced supply-demand tension.
Volume-Price Relationship
The 3.16% decline occurred on elevated volume (22.97 million shares), marking distribution. Notably, the prior high at £11.42 was established on below-average volume (14.85 million), creating a bearish volume divergence. This weak volume signature at highs, coupled with high-volume selling pressure, undermines bullish conviction and suggests limited upside sustainability.
Relative Strength Index (RSI)
The 14-day RSI reads approximately 65, retreating from overbought territory (>70) following the sharp decline. While the pullback alleviates immediate overbought risks, failure to breach 70 during recent highs implied weakening momentum. Oscillator behavior suggests range-bound conditions may prevail unless RSI sustains movement beyond 60-70 bounds.
Fibonacci Retracement
Using the swing low of £8.38 (2024-06-04) and high of £11.42 (2025-06-02), key retracement levels emerge: £10.70 (23.6%), £10.26 (38.2%), and £9.90 (50%). The current price holds above the 23.6% level (£10.70). Holding this level may indicate shallow retracement, while breaching £10.26 would suggest deeper correction toward the 50% zone.
Confluence Points
Multiple indicators reinforce the £10.70 zone as critical: it aligns with the 23.6% Fibonacci level and corresponds to the May consolidation area (£10.67-10.80). Volume-supported breakdown below £10.70 could accelerate selling, while holding above maintains bullish structure. Divergence appears between the MACD’s proximity to a bearish crossover and the RSI’s neutral reading, reflecting conflicting signals about trend continuation versus reversal probability. This may resolve as the price interacts with the 50-DMA and volume patterns evolve in subsequent sessions. Bearish volume confirmation at resistance combined with KDJ reversal warns of near-term weakness, but the primary trend remains constructive below £10.26 given moving average alignment.