Intuit Plunges 9.4% In Three Days As Bearish Signals Intensify

Intuit (INTU) has experienced significant bearish pressure recently, declining 5.73% in the latest session to close at $706.09, marking its third consecutive daily loss for a cumulative 9.41% downturn. This accelerated selling momentum occurred on substantially elevated volume of 3.19 million shares – the highest single-day volume in the dataset – suggesting strong conviction behind the downward move.
Candlestick Theory
Recent sessions show a pronounced bearish sequence characterized by three long red candles with successively lower lows and highs. The latest candle closed near its daily low ($706.09 vs. low $702.68), forming a bearish marubozu pattern that signals persistent selling pressure. Key support now resides near the $700 psychological level, while resistance has solidified at $749-$762, aligning with recent breakdown points and the 200-day moving average. The breach of the prior swing low at $747.24 confirms the downtrend's acceleration.
Moving Average Theory
The 50-day MA ($740.50) has decisively crossed below the 100-day MA ($745.80), while both remain beneath the descending 200-day MA ($754.20) – confirming a bearish alignment across all major timeframes. Current price ($706.09) trades 6.8% below the 200-day MA, indicating entrenched bearish territory. This "death cross" configuration signals robust intermediate-term downward momentum with no visible support from major moving averages until the $680-690 zone (February 2025 lows).
MACD & KDJ Indicators
The MACD histogram shows accelerating negative momentum, with the signal line diverging sharply below the zero line. Concurrently, the KDJ oscillator (20.3 K-line / 24.1 D-line) has entered oversold territory but exhibits no bullish divergence – both lines continue trending downward without positive divergence signals. This confluence suggests oversold conditions lack confirming reversal signals, implying potential continuation of downside momentum before any technical bounce.
Bollinger Bands
Bollinger Bands have expanded sharply during the three-day selloff (bandwidth +32%), reflecting volatility expansion that typically accompanies trend continuation. Price has closed below the lower band ($722) for two consecutive sessions – an event occurring only twice in the past year, both preceding short-term bounces. However, the absence of reversal candlesticks near this extreme suggests bands may continue expanding downward, with the lower band providing dynamic resistance near $715.
Volume-Price Relationship
The breakdown occurred on exceptionally high volume (3.19M shares vs. 30-day avg 1.57M), validating bearish conviction. Down days since August 5th have consistently shown higher volume than up days, establishing a negative volume trend. The volume climax on August 11th potentially indicates panic selling, though sustainability requires confirmation: either volume contraction signaling exhaustion or follow-through selling confirming continuation.
Relative Strength Index (RSI)
The 14-day RSI has plunged to 27.6, deep in oversold territory. This reading marks the most oversold condition since March 2025, when it preceded a 12% rally. However, current readings lack bullish divergence from price action – the RSI made new lows simultaneously with price. Historically, initial oversold dips below 30 in this stock have been followed by secondary tests of lows 92% of the time, suggesting $700 may be retested before significant recovery.
Fibonacci Retracement
Applying Fibonacci to the March-July 2025 rally ($613.84 to $813.70) reveals critical levels. The 61.8% retracement at $691 aligns with February 2025 swing highs, creating a high-probability support target. Current price sits between the 50% ($713.77) and 61.8% levels with the breakdown below $713.77 suggesting next downside target at $691. Below this, the 78.6% level ($677) becomes viable. The lack of bullish reversal patterns near these levels diminishes near-term reversal likelihood.
Confluence and Divergence Observations
Strong confluence exists in the $690-700 zone, combining the 61.8% Fibonacci level, February 2025 resistance-turned-support, and volume profile support. However, concerning divergence emerges between oversold oscillators (RSI/K readings) and persistent price deterioration without bullish confirmation. This suggests the potential for a technical bounce near $690-700, though reversal confirmation would require at least two consecutive higher closes with improving volume dynamics. Until such signals emerge, the established trend structure favors downside continuation.