STERIS Slips 1.84% Amid Resistance Rejection Near $249.35

STERIS (STE) declined by 1.84% to close at $243.83 in the most recent session, trading within a range of $243.83 (low) to $248.55 (high) on volume of 431,140 shares. This movement forms the basis for our technical assessment of the stock's price dynamics.
Candlestick Theory
The August–September price action shows notable patterns, with a bullish engulfing candle on 2025-08-07 (gaining 6.79%) confirming momentum. Recently, the failure to hold above $249.35 resistance (2025-09-08 high) followed by a bearish close at the session low of $243.83 signals near-term exhaustion. Key support resides at $242.41–$242.58 (confluence of 2025-09-05 low and Fibonacci 38.2% level), while resistance remains firm at $248.55–$249.35, which rejected price advances twice this month.
Moving Average Theory
Short-term averages reflect consolidation: the 50-day MA ($238.50) and 100-day MA ($232.20) slope upward, but the price closed below the 10-day EMA. Crucially, STE maintains position above all major averages (50/100/200-day), with the 200-day MA ($225.80) acting as a foundational trend support since April 2025. The configuration still signals a primary uptrend, though the recent rejection near $249 may foreshadow short-term consolidation.
MACD & KDJ Indicators
The MACD (12,26,9) shows a bullish structure with the histogram in positive territory, though momentum divergence emerged as prices retreated from the $249 area while the histogram flattened. KDJ readings (55.2 K-line / 62.0 D-line) have retreated from overbought (>80) territory but hold above 50, suggesting moderated bullish momentum without immediate oversold pressure. This cooldown aligns with the MACD’s loss of acceleration, indicating consolidation risk near term.
Bollinger Bands
Bands contracted sharply in July–August 2025 (width narrowing 20%) before expanding during the September rally, reflecting resurgent volatility. Price currently tests the middle band ($244.00), with the lower band ($235.00) offering secondary support. The recent upper-band tag ($249.35) and rejection emphasize this zone as a tactical resistance, while band expansion supports continued volatility.
Volume-Price Relationship
Volume surged 133% to 1.19 million shares during the 2025-05-15 breakout (+8.52%), validating that advance. Conversely, the September pullback occurred on diminishing volume (recent session volume 54% below the monthly average), indicating limited conviction in the selloff. The divergence between price decline and subdued volume suggests potential consolidation rather than distribution.
Relative Strength Index (RSI)
The 14-day RSI (58.7) cooled from overbought levels (>70 in early September) but remains above the neutral 50 threshold. Historically, RSI has respected the 40–45 zone as support during pullbacks since May 2025. While no immediate oversold signal exists, the indicator’s retreat from overextended territory warns of waning near-term momentum.
Fibonacci Retracement
Applying Fib levels to the 2025-08-07 swing low ($226.58) and 2025-05-16 peak ($252.20) reveals confluent support at $242.41 (38.2% retracement), aligning with the 2025-09-05 low. The 50% level resides at $239.39, corresponding to September’s consolidation base. Recent price stability near the 38.2% level ($242.41) reinforces its technical significance, with a decisive break potentially exposing $239.39 as the next downside target.
Confluence and Divergence Observations
Confluence appears at $242.41–$243.83, where Fib support, the Bollinger middle band, and September’s horizontal support converge – a breakdown here could accelerate selling. Divergences manifest via MACD momentum fading as prices tested resistance at $249.35, alongside RSI’s bearish reversal from overbought. These warn of near-term vulnerability despite the structural uptrend holding above key moving averages. Probable outcomes include consolidation between $242–$249, with breach of either bound determining directional bias.