KB Financial Shares Plunge 4.42% to 78.26 as Bearish Signals Intensify

KB Financial Group shares declined 4.42% to close at 78.26 in the most recent session (2025-08-18), reflecting intensified bearish momentum. The stock established a new short-term low of 77.565 during the session, extending a three-day decline that has erased most gains from the early August rally. This price action occurs within a broader technical context characterized by conflicting signals across indicators, as detailed in the following analysis.
Candlestick Theory
The recent formation displays a bearish sequence, with a dark cloud cover pattern emerging on 2025-08-12 (gap-up followed by weak close) preceding a three black crows configuration from 2025-08-13 to 2025-08-15. The latest session's long red candle closing near its low confirms strong selling pressure. Immediate resistance now clusters between 81.88 (August 15 close) and 82.63 (August 7 high), while critical support is established at 77.57 (August 18 low), aligning with the June-July consolidation zone.
Moving Average Theory
The 50-day moving average (∼81.30) crossed below the 100-day MA (∼82.40) in early August, generating a bearish death cross. The current price trades below both short-term averages but remains above the rising 200-day MA (∼73.50). This configuration suggests intermediate-term bearish momentum persists, though the long-term uptrend is technically intact. The convergence of the 50-day and 100-day MAs near 81.50 creates a significant resistance zone.
MACD & KDJ Indicators
MACD histogram readings have been negative since late July, with the signal line maintaining a bearish divergence below zero. KDJ components have entered oversold territory (K: 22, D: 25, J: 16), though this oversold signal occurs during strong downward momentum. Notably, neither indicator shows bullish divergence despite the recent lows, suggesting bearish dominance remains unchallenged. This aligns with MACD's bearish crossover occurring in mid-July near price highs.
Bollinger Bands
The bands contracted significantly through early August, preceding a volatility expansion that saw prices breach the lower band on August 18. This breakout suggests potential continuation of the bearish move, though such violations often precede short-term reversals when occurring near historical support. The 20-period moving average (center line) at 81.40 now acts as dynamic resistance, with the lower band at 77.80 providing immediate support.
Volume-Price Relationship
Trading volume surged to 225,974 shares during the August 18 decline—75% above the 30-day average—confirming strong conviction behind the selloff. This distribution pattern contrasts with the weaker volume during the early August advance, suggesting unsustainable rallies. The high-volume reversal from the July 24 peak at 90.36 established significant resistance, while current volume characteristics indicate capitulation may be developing.
Relative Strength Index
The 14-day RSI reading of 31 approaches oversold territory but hasn't reached extreme levels. Crucially, it maintains a series of lower highs since July, showing no divergence against the price's lower lows. This indicates bearish momentum remains intact despite nearing technical oversold conditions. Traders should note that during persistent downtrends, RSI can remain depressed for extended periods before signaling reversals.
Fibonacci Retracement
Applying Fibonacci levels to the upswing from May's swing low (74.75) to July's peak (90.36), key retracement zones emerge. The current price has breached the critical 61.8% level (80.30) and approaches the 78.6% retracement at 76.80. The 50% retracement (82.56) now aligns with the 100-day moving average, creating a confluence resistance zone. Historical reactions near the 76.80 level in June suggest potential support strength if tested.
Confluence and Divergence Observations
Multiple indicators reinforce bearish momentum: high-volume breakdowns, Bollinger Band violations, and moving average death crosses align at 81.50 resistance. However, emerging oversold KDJ signals and RSI approaching 30 warrant caution against new shorts. The primary divergence lies between momentum oscillators (showing oversold conditions) and volume/MACD signals (confirming bearish trend continuation). Such conditions may precipitate a technical bounce toward the 80.30-81.50 resistance cluster before resumption of the downtrend.