Sanofi Shares Plunge 7.33% to $45.64 as Bearish Momentum Intensifies

Sanofi (SNY) has experienced significant bearish pressure recently, evidenced by a 7.33% decline in the latest session to $45.64, extending its losing streak to four consecutive days with a cumulative 9.39% drop. This downward momentum forms the backdrop for the following technical assessment.
Candlestick Theory
Recent price action shows a decisive breakdown pattern. The latest session formed a long-bodied bearish candle that breached the $46.50–$48.50 support zone established in late July. This violation confirms new resistance near $46.50 and identifies critical psychological support at $45.00 – a level last tested in April 2025. The absence of reversal patterns like hammers or bullish engulfing underscores persistent selling pressure.
Moving Average Theory
Sanofi's trend structure remains bearish across all major timeframes. The price currently trades below the 50-day MA ($48.85), 100-day MA ($50.20), and 200-day MA ($52.10). Of particular note is the recent bearish crossover where the 50-day MA declined below the 100-day MA – a classic "death cross" signal suggesting medium-term deterioration. The alignment of all three moving averages in descending order confirms a well-established downtrend.
MACD & KDJ Indicators
MACD (12,26,9) displays accelerating downside momentum with the histogram expanding below the zero line. Concurrently, the KDJ oscillator (9,3,3) registers deeply oversold readings (K:15.2, D:20.5, J:4.6), indicating potential exhaustion in selling pressure. While such conditions often precede technical rebounds, the absence of bullish divergence implies reversal confirmation is still lacking. MACD’s sustained negative territory tempers oversold optimism from KDJ.
Bollinger Bands
The bands exhibit pronounced expansion, reflecting heightened volatility during the recent selloff. The price has consistently tested the lower Bollinger Band ($45.50) since July 29. While penetration below this band typically signals oversold conditions, the failure to reclaim the 20-day moving average midline ($47.20) suggests continued bearish control. The bandwidth expansion supports continuation potential.
Volume-Price Relationship
Volume patterns confirm bearish conviction. The 9.81 million shares traded during the latest 7.33% decline mark a 392% increase over the 30-day average. This distribution surge validates the breakdown, reflecting institutional participation. Elevated volume on down days versus muted volume on recovery attempts since late June illustrates persistent selling interest overwhelming demand.
Relative Strength Index (RSI)
The 14-day RSI (22.5) is deeply oversold (<30), reaching its most extreme reading in twelve months. Historically, similar RSI dips in April 2025 preceded minor rebounds. However, the current position below 30 without bullish divergence suggests oversold conditions could persist before reversal materializes. Traders should treat this as a warning rather than a reversal signal.
Fibonacci Retracement
Applying Fibonacci levels to the April–June 2025 advance (swing low: $45.00 on April 9; peak: $50.30 on June 13) reveals that the current price at $45.64 is testing the 100% retracement level ($45.00). This represents a critical psychological and technical support zone. The 61.8% retracement level at $47.70 now serves as immediate resistance, aligning with July 30–31 highs. A failure to hold $45.00 could extend declines toward the 127.2% extension ($44.50).
Conclusion
Multiple technical indicators show bearish confluence: breakdown below moving averages, volume-confirmed support violation, and MACD momentum confirmation. However, oversold extremes in RSI and KDJ, coinciding with the $45.00 Fibonacci support, suggest heightened potential for a technical rebound near-term. A decisive close below $45.00 would signal continuation toward $44.50–$43.00. Conversely, recovery requires sustained clearance above $46.50 resistance and subsequent acceptance above $47.70. Given indicator divergences, monitoring price action at $45.00 remains critical for directional bias.