KB Financial Group Plummets 13.24% In Two Days Amid Heavy Selling Volume

KB Financial Group experienced a pronounced decline in its most recent trading session, falling 8.74% to close at 78.40. This marks the second consecutive daily loss, resulting in a cumulative 13.24% drop over two days amid elevated trading volume. The following technical analysis evaluates this development through multiple frameworks.
Candlestick Theory
The recent price action features a classical reversal pattern. The July 24th bullish candle (high: 92.39, close: 90.36) was immediately followed by two long-bodied bearish candles with progressively lower closes (85.91 on July 25th and 78.40 on July 28th). This sequence resembles a bearish engulfing pattern, suggesting strong selling momentum. Key resistance now emerges near 85.91 (prior swing low) and 90.36 (recent high), while support is evident at 78.00–78.20 (tested twice in late June 2025) and 76.50–77.00 (long-term pivot zone from May–June 2025). The breakdown below 85.91 shifts near-term bias bearishly.
Moving Average Theory
The sharp selloff has disrupted the moving average alignment. The 50-day moving average (approximated at 83.50) crossed bearishly below the 100-day moving average (~78.80) in late July—a "death cross" event that often signals deteriorating medium-term momentum. Meanwhile, the long-term 200-day moving average (~71.00) remains below current prices but exhibits a flattening slope. The close at 78.40 now trades below the 50-day and 100-day averages, confirming near-term bearish pressure. A sustained break below the 100-day MA would reinforce downside vulnerability.
MACD & KDJ Indicators
The MACD histogram has shifted decisively negative, with the signal line accelerating below the zero line after July 24th. This momentum deterioration aligns with bearish moving average crossovers. Concurrently, the KDJ oscillator (using standard 9/3/3 settings) shows the %K line plunging into oversold territory (reading <20) from overbought levels (>80) in late July. While this suggests an exhausted short-term selloff, both indicators lack clear bullish divergence. MACD’s bearish crossover and KDJ’s downward slope imply unresolved downward momentum.
Bollinger Bands
Volatility expansion is evident as the 20-day Bollinger Bands widened dramatically during the two-day selloff—bandwidth increased by ~35%. Price has breached the lower Bollinger Band (approximately 80.50 on July 28th), an event historically associated with short-term oversold conditions for KB Financial. However, the close below the lower band, when coupled with high volume and fundamental catalysts, could also signal continuation. A reclaim of 80.50 would be necessary to suggest volatility normalization and stabilization.
Volume-Price Relationship
Volume patterns validate the bearish reversal. The July 24th advance occurred on elevated volume (981,734 shares), succeeded by even higher selling volume on July 28th (759,243 shares)—the highest daily volume in over two months. This distribution pattern (churning volume on rallies, expanding volume on declines) signals institutional selling. Supportive volume on the breakdown below 85.91 increases confidence in sustainability. Any rebound attempt lacking proportional volume could face rejection.
Relative Strength Index (RSI)
The 14-day RSI has plummeted to 25, entering oversold territory from neutral levels (55) just three sessions prior. While this warns of potential short-term exhaustion, its efficacy as a reversal signal is questionable during strong momentum moves. Notably, RSI did not form bullish divergence during the July decline, implying unimpaired downward momentum. Historical reactions near RSI=25—such as the May 2025 rebound—suggest monitoring for stabilization signals.
Fibonacci Retracement
Applying Fibonacci levels to the rally from the June 3rd low (73.33) to the July 24th peak (92.39) reveals critical thresholds. The 50% retracement (82.86) and 61.8% level (80.61) were breached decisively. The current price (78.40) approaches the 78.6% retracement at 77.38—a level that aligned with the April-May 2024 congestion zone. This deep retracement hints at structural trend damage. Confluence exists between the 78.6% Fib and horizontal support near 78.00–77.30, making this a pivotal area for potential consolidation or reversal attempts.
Conclusive Assessment
Technical indicators broadly concur regarding bearish near-term momentum. Confluence appears at 77.30–78.00, combining Fibonacci, horizontal, and moving average support. Volume and volatility expansions suggest institutional participation in the selloff, potentially extending the decline toward 75.00 if support falters. Divergences are absent, though oversold readings (RSI, KDJ, Bollinger) open the possibility of technical bounces. A recovery above 80.60 (Fibonacci 61.8%) would be needed to neutralize immediate bearish bias. The absence of reversal signals, however, favors defensive positioning until price-volume confirmation emerges near support zones.