Teck Resources Drops 3.31% as Technical Indicators Signal Deepening Bearish Momentum

Teck Resources (TECK) fell 3.31% in the most recent session, closing at $50.54. This decline follows a volatile pattern of price swings over the past year, with notable peaks near $44.90 in December 2025 and troughs below $33.00 in September 2025. The stock’s technical profile suggests a mix of bearish momentum and potential short-term oversold conditions, with multiple indicators converging on key levels.

Candlestick Theory

Recent price action reveals a bearish engulfing pattern, as the January 16 close of $50.54 decisively rejected the prior session’s high of $52.42. This pattern, coupled with a long lower shadow on January 15, suggests intermediate-term bearishness. Key support levels are forming at $49.73 (January 13 low) and $47.55 (December 31 low), while resistance remains at $52.27 (January 15 high). A break below $49.73 may trigger further tests of the $47.55 level, but a rebound above $52.27 could signal a temporary reversal.

Moving Average Theory

The 50-day moving average (approximately $47.80) and 200-day moving average (around $40.00) indicate a bearish trend, with price currently below both. The 100-day MA ($45.50) adds intermediate bearish confirmation. However, the 50-day MA has begun to flatten, suggesting short-term momentum may stabilize. A sustained close above the 50-day MA would likely require a rally to $53.00, aligning with the January 15 high, to signal a potential trend shift.

MACD & KDJ Indicators

The MACD histogram has turned negative, with the MACD line crossing below the signal line, reinforcing bearish momentum. The KDJ indicator (Stochastic) shows %K dipping below 20, indicating oversold conditions, though %D remains in neutral territory. This divergence suggests caution: while overbought conditions may persist, a closing rally above $51.00 could trigger a short-term bounce. However, the MACD’s bearish bias implies further downside is probable unless %K and %D align with bullish momentum.

Bollinger Bands

Volatility has contracted recently, with the January 16 close near the lower Bollinger Band ($49.70–$52.20 range). This contraction, combined with the bearish engulfing pattern, may precede a breakout. A break below the $49.70 level would likely expand the lower band, signaling increased volatility and bearish continuation. Conversely, a rebound above the mid-band ($50.95) may temporarily stabilize the trend but is unlikely to reverse it without a close above the upper band.

Volume-Price Relationship

Trading volume on January 16 was 3.19 million shares, below the 10-day average of 4.2 million, suggesting the recent decline lacks strong bearish conviction. However, volume spiked to 6.35 million on December 18 when the stock surged 2.24%, validating that strength. The recent weakness, while significant in price, is not yet supported by expanding volume, which may indicate a temporary pullback rather than a sustained downtrend.

Relative Strength Index (RSI)

The 14-day RSI has dipped to 28, entering oversold territory. While this historically suggests a potential rebound, the RSI’s failure to close above 35 in the past three sessions indicates bearish exhaustion rather than a reversal. A sustained close above 40 would be necessary to confirm a shift in momentum, but the current RSI divergence (price rising while RSI falls) cautions against overreliance on this signal.

Fibonacci Retracement

Applying Fibonacci levels to the December 2025 high ($48.57) and January 2026 low ($47.55), key retracement levels at $48.05 (38.2%) and $47.85 (50%) align with recent support. A break below $47.55 would target the $46.55 level (61.8% retracement). Meanwhile, the $52.27 January 15 high acts as a critical Fibonacci extension level for potential resistance.

Convergence and Divergence

Strong confluence exists at the $49.73 support level, where Bollinger Bands, Fibonacci retracements, and candlestick patterns align. Conversely, the MACD and KDJ indicators diverge from the RSI’s oversold signal, suggesting a bearish continuation is more probable than a reversal. Traders should monitor volume expansion on a break below $49.73 for confirmation of further downside, while a close above $52.27 without a corresponding surge in volume may signal a false breakout.