JBS Plunges 4.54% Amid Bearish Technical Signals And High-Volume Selloff

JBS experienced a significant decline of 4.54% in its most recent trading session, closing at 13.89 on 2025-08-14. This sharp drop warrants a detailed technical examination of potential trend shifts and key price levels using multiple methodologies.
Candlestick Theory
The recent price action reveals critical patterns and levels. On 2025-08-14, JBS formed a long bearish candle that fully engulfed the prior session's body, suggesting strong selling pressure. This bearish engulfing pattern near the recent high of 14.58 (2025-08-13) indicates potential short-term reversal. Key resistance now sits at 14.26–14.58 (recent highs), while support resides near 13.65 (08/14 low), aligning with the psychological 13.50 level. A breach below 13.65 may trigger further downside toward the 13.30–13.40 consolidation zone observed in late July.
Moving Average Theory
Calculations based on closing prices show the 10-day SMA at 14.12 and 20-day SMA at 13.71. JBS currently trades between these averages after closing below the 10-day SMA, indicating short-term bearish momentum. The convergence of the 20-day SMA near the Fibonacci 50% retracement level (discussed later) creates a critical support cluster around 13.70–13.80. Failure to hold above this zone could accelerate selling, while a rebound above the 10-day SMA would signal resilience.
MACD & KDJ Indicators
The MACD (12,26,9) histogram has turned negative following the recent decline, suggesting weakening bullish momentum. A bearish crossover appears imminent if the trend persists. Meanwhile, the KDJ oscillator's %K reading of 46 places it in neutral territory, showing no extreme conditions. However, the sharp price drop without corresponding oversold KDJ signals may imply unresolved downward pressure. This divergence between price action and KDJ warrants caution.
Bollinger Bands
Bollinger Bands (20-day, 2σ) highlight expanding volatility, with the 08/14 close piercing the lower band intraday before settling slightly above. The price currently tests the mid-band (20-SMA at 13.71), a critical equilibrium point. A sustained break below 13.71 could target the lower band near 13.20–13.30. Band expansion confirms heightened volatility, increasing the probability of directional continuation.
Volume-Price Relationship
Volume surged to 8.1 million shares during the 4.54% decline, significantly exceeding the 30-day average of approximately 4.2 million. This high-volume sell-off indicates institutional distribution and validates the bearish candlestick pattern. The lack of comparable volume during the preceding rally days (08/12–08/13) further undermines confidence in upside sustainability. Volume divergence reinforces the reversal signal.
Relative Strength Index (RSI)
The 14-day RSI reading of 58 remains neutral, yet masks developing weakness. Despite the sharp price decline, RSI has not entered oversold territory (<30), reflecting underlying bearish momentum. This divergence between price and RSI dynamics increases near-term downside risk. However, RSI's neutral position also leaves room for either consolidation or further decline without immediate mean-reversion signals.
Fibonacci Retracement
Applying Fibonacci to the swing low of 13.05 (2025-07-21) and high of 14.58 (2025-08-13) yields critical levels: 23.6% (14.22), 38.2% (14.00), 50% (13.82), and 61.8% (13.64). The current price near 13.89 hovers just above the 50% retracement (13.82), which converges with the 20-day SMA (13.71). This creates a high-probability support zone at 13.70–13.82. A decisive break below this area could trigger a move toward the 61.8% level at 13.64, while holding above maintains recovery potential.
Synthesis of Confluence and Divergence
Multiple indicators converge to highlight 13.70–13.80 as a decisive support region, combining the Fibonacci 50% level, 20-day SMA, and previous consolidation lows. Volume validation of the bearish candlestick pattern strengthens reversal concerns. Notable divergences include RSI's failure to reach oversold levels despite the sharp decline, and KDJ's neutral reading during high-volume selling, both suggesting unresolved downside pressure. The MACD's bearish trajectory further supports caution. Should the 13.70–13.80 support cluster fail, accelerated selling toward 13.30–13.40 becomes probable. Conversely, reclaiming 14.00 could signal stabilization. Traders should monitor these thresholds closely in the coming sessions.