Monster Beverage Shares Drop 5.56% In Three Days As Bearish Signals Intensify

Monster Beverage (MNST) shares declined 3.28% in the most recent session, marking the third consecutive day of losses with a cumulative 5.56% drop. This accelerated selling pressure brings the closing price to $59.57, establishing new near-term lows amid heightened trading volume.
Candlestick Theory
Recent candlestick patterns display a bearish trajectory characterized by three consecutive long-bodied red candles (July 7-9), suggesting strong selling momentum. The formation resembles a "Three Black Crows" pattern at the $63.34-$59.24 range, indicating potential continuation of the downtrend. Key resistance emerges at $61.67 (July 9 high), aligning with the psychological $62.00 level. Support rests at $59.24 (July 9 low), with a critical breakdown level at $58.85 – the February swing high. The absence of hammer or doji formations implies no immediate reversal signals.
Moving Average Theory
The 50-day moving average ($62.40) crossed below the 100-day MA ($63.15) in early July, triggering a bearish crossover. Current price trades below all three major MAs (50/100/200-day), confirming a bearish trend structure. The 200-day MA ($57.80) now serves as the next major support, while the expanding distance between the price and the 50-day MA highlights accelerating downside momentum. This alignment suggests sustained bearish pressure may persist in the intermediate term.
MACD & KDJ Indicators
The MACD histogram shows accelerating negative momentum, with both MACD and signal lines entrenched below the zero line since late June. Meanwhile, the KDJ indicator entered oversold territory (K=18.7, D=23.4, J=9.3), diverging from MACD's bearish signal. This dichotomy suggests that while momentum remains downward, oversold readings warn of potential near-term consolidation. Traders should monitor for bullish KDJ crossovers that might precede short-term bounces, though MACD's configuration suggests any recovery could be limited.
Bollinger Bands
Price has breached the lower Bollinger Band ($60.80) with conviction, trading 5.3% below the 20-day moving average. Bandwidth expansion from 2.4% to 4.1% over the past three sessions confirms increasing volatility. Historically, such violations have led to mean-reversion bounces toward the 20-day midline, but concurrent high-volume breakdowns increase the risk of extended downside. Sustained trading outside the lower band is statistically unusual and may indicate capitulation.
Volume-Price Relationship
Volume patterns validate bearish momentum, with selling volume increasing sequentially from 4.27 million to 9.96 million shares over the three-day decline. The July 9 session recorded the highest volume since April 9 – 49% above the 30-day average – confirming conviction behind the breakdown. This distribution pattern suggests institutional participation in the selloff. Any recovery attempt should be viewed skeptically without commensurate volume support.
Relative Strength Index (RSI)
The 14-day RSI reads 28.6, entering oversold territory for the first time since November 2024. However, oversold conditions do not guarantee reversal – the RSI reached 27 during April's steep decline before continuing downward. Bearish RSI divergence occurred in June when prices made higher highs ($64.36) as RSI peaked at 62.9 (lower than May's 69.5 peak), foreshadowing weakening momentum. Current oversold readings could trigger technical rebounds but remain insufficient without confirmation from other indicators.
Fibonacci Retracement
Applying Fibonacci levels to the primary uptrend from August 2024 low ($45.00) to July 2025 high ($64.36), the 38.2% retracement at $57.20 aligns closely with the 200-day MA, forming a critical support confluence. The current price at $59.57 has breached the 23.6% level ($60.80), exposing the 38.2% target. Between these levels, psychological support exists at the $59.00 round number and the January 2025 consolidation zone. Multiple Fibonacci extensions converge at $54.80-$56.00 (50%-61.8%) – a high-probability reversal zone where momentum indicators may be retested if selling persists.
Conclusively, technical factors align bearishly, with volume-confirmed breakdowns through moving averages and Fibonacci levels suggesting further downside toward the $57.20-$59.00 support cluster. Divergences emerge as oversold momentum indicators (KDJ/RSI) contrast with trend indicators (MACD/MAs), potentially enabling near-term bounces. However, trend strength and volume patterns favor downside continuation, indicating rallies should be treated as corrective until price reclaims the $61.67 resistance threshold.