Shinhan Financial Shares Drop 1.25% Amid Bearish Technical Signals

Shinhan Financial Group (SHG) shares declined 1.25% in the most recent session, closing at 49.59 after trading between 49.39 and 50.06. This price action forms a bearish candlestick within a broader technical context, which we analyze below through multiple frameworks.
Candlestick Theory
Recent candlestick patterns reveal key technical levels. The July 8th session formed a large bullish marubozu (open at 50.19, close at 50.40) on substantial volume, establishing a resistance zone around 51.20. However, the subsequent three sessions developed a bearish evening star pattern culminating in the July 11th down candle. Immediate support is evident near 49.30-49.40, aligning with the July 9th low and March peak. Resistance converges at 50.40-50.60, the recent swing high and 200-day moving average zone. Failure to hold 49.30 may trigger a retest of the June low at 45.18.
Moving Average Theory
The moving average structure suggests conflicting signals. The 50-day SMA (currently near 43.80) maintains an upward slope, supporting intermediate bullishness. However, price remains below the flat 100-day SMA (47.20) and decisively under the descending 200-day SMA (50.60). This configuration indicates resistance near 50.60, while bull-bear equilibrium will likely require sustained trading above the 200-day SMA. The 50/200-day death cross from late April remains technically relevant.
MACD & KDJ Indicators
MACD trends downward in negative territory (-0.42 histogram), though the moving average crossover shows slowing bearish momentum. Conversely, KDJ presents a bullish divergence: while price made lower highs in early July, the K-line formed higher highs. This inconsistency suggests waning selling pressure. However, KDJ's current position (K:58, D:61, J:52) remains neutral, requiring a decisive move beyond the 70/30 thresholds to signal overbought or oversold extremes. This divergence warrants monitoring for potential reversal confirmation.
Bollinger Bands
Bollinger Band width contracted sharply preceding the July 8th breakout, with volatility expansion driving price to the upper band (51.20). Recent retracement has pulled prices toward the 20-period midline (47.80) as bands moderately expand. Current positioning in the lower band region (48.20) indicates near-term oversold conditions. A consolidation near the midline would support neutral realignment, while a close below could accelerate downward momentum.
Volume-Price Relationship
Volume patterns validate key price movements. The July 8th breakout occurred on the highest volume in three months (513,392 shares), confirming bullish conviction. Conversely, the subsequent 1.25% decline on July 11th manifested on reduced volume (-17% vs average), suggesting limited bearish follow-through. The April-to-June recovery showed consistent accumulation on rising volume, establishing 43.00-44.00 as a high-volume support zone. Current lack of volume expansion below 49.00 diminishes breakdown reliability.
Relative Strength Index (RSI)
The 14-day RSI (54.6) resides in neutral territory after retreating from near-overbought levels (69.8 on July 8th). While the June oversold reading (27.2) correctly anticipated a 15% rally, RSI's current midpoint position provides limited directional bias. Bullish divergence emerged as July's lower price highs coincided with higher RSI highs, mirroring KDJ's signal. Traders should monitor the 40 support level, as failure could signal strengthening downward momentum.
Fibonacci Retracement
Applying Fibonacci to the March-June decline (high: 43.57, low: 37.67) shows critical confluences. The 61.8% retracement (41.45) acted as resistance in May before the June breakout. Current price interacts with the 127.2% extension (49.70), aligning with psychological resistance at 50.00. The 161.8% extension at 52.50 represents the next major upside target. Conversely, pullbacks would find initial support at the 78.6% retracement (46.80), coinciding with the 50-day moving average.
Confluence exists at 46.80-47.20 (50-day SMA + 78.6% Fibonacci) for potential support, and at 50.40-50.60 (200-day SMA + recent swing high) for resistance. Notable divergence between MACD's bearish trajectory and KDJ/RSI's bullish divergence creates uncertainty. Volume diminution near support levels warrants caution against aggressive bearish positioning despite near-term bearish candlestick structures. The highest-probability outcome suggests rangebound consolidation between 47.20-50.60 pending decisive fundamental catalysts or technical resolution.