Insmed Stock Falls 3.84% To $135.59 Amid Bearish Technical Signals

Insmed (INSM) declined 3.84% to close at $135.59 on September 25, 2025, marking two consecutive down days with a cumulative 6.73% loss. The stock retreated from its recent high of $145.38 on September 23, reflecting increasing bearish pressure as prices tested the $135.08 intraday low amid above-average volume of 2.17 million shares. This recent weakness provides context for the following technical assessment.
Candlestick Theory
Recent sessions show deteriorating momentum. The September 23-24 period formed a bearish engulfing pattern near resistance at $146, with the September 25 candle closing near session lows – indicative of persistent selling pressure. Key support emerges at $135 (recent low and psychological level), while resistance now consolidates at $140.65 (September 25 high), aligning with the August-September swing highs near $146-$148 that capped upside progress. A breach below $135 may trigger further downside targeting the $132 gap from late August.
Moving Average Theory
Current price ($135.59) sits below all critical moving averages: the 50-day ($139.80), 100-day ($138.20), and 200-day ($134.50). The 50-day crossing below the 100-day in early September signaled momentum deterioration, and the 200-day’s flattening slope suggests waning long-term bullish bias. With prices accelerating below the 50/100-day cluster, the near-term trend is bearish. Holding above the 200-day MA ($134.50) is crucial to prevent cascading selling.
MACD & KDJ Indicators
MACD (12,26,9) exhibits a bearish configuration, with the histogram expanding negatively since September 19 and the signal line maintaining downside trajectory. Concurrently, the KDJ oscillator (14-period) shows the %K line (27) diving below %D (35) from overbought territory (>80) on September 22 – signaling accelerating downside momentum. While not yet oversold, the MACD’s persistent negative divergence relative to August price highs warns of weakening upside participation.
Bollinger Bands
Volatility expansion is evident as prices breached the lower Bollinger Band ($138.20) on September 25 amid a band width expansion – confirming the bearish breakout. This follows a prolonged consolidation near the upper band in late August/early September. With the lower band now sloping downward and price trading below it, near-term targets align with the 2-standard-deviation extreme near $131. A contraction in band width would be required to signal downside exhaustion.
Volume-Price Relationship
Distribution patterns emerged on down days: September 25’s decline occurred on 2.17M shares (above the 30-day average of 2.05M), confirming bearish conviction. This follows September 19’s high-volume reversal at $146.37. Conversely, August’s rally toward $146 featured progressively lower volume – notably August 18 ($146.52 close on 4.85M shares) versus September 2’s $145.30 close on just 2.19M shares. Recent volume expansion during declines suggests institutional selling.
Relative Strength Index (RSI)
The 14-day RSI (41.6) is declining from neutral levels but remains above oversold thresholds. While RSI held above 30 during July-August pullbacks, its failure to breach 55 during September’s recovery signaled bearish divergence. Current readings suggest room for additional downside before reaching historically oversold levels (<30), though prices may stabilize near $132 (May-August support) if RSI approaches 30.
Fibonacci Retracement
Applying Fib levels to the June low ($66.61) and September peak ($148.22): The 38.2% retracement at $118.50 provided critical August support. Current prices near $135 test the 23.6% level ($136.80) – failure to hold here opens downside toward the 50% retracement at $107.40. Confluence exists at the 200-day MA ($134.50) and 23.6% Fib, making this a pivotal support zone. Resistance now forms at the 0% level ($148.22) and the August swing high near $146.
Confluence and Divergence Observations
Confluence of bearish signals emerged: The MACD/KDJ breakdown synchronized with the Bollinger Band breakout and volume-backed price decline. Key resistance confluence exists at $146-148 (swing highs + upper Bollinger Band). A critical divergence occurred in late August as prices challenged $146 on diminishing volume and RSI non-confirmation – foreshadowing September’s reversal. Near-term direction hinges on the $134.50-136 zone (200-day MA + 23.6% Fib). Breach below $134.50 may accelerate selling toward $128 (June consolidation), while recovery above $140.65 could enable a retest of $145.