Teradyne Plunges 9.03% to $132.08 as Bearish Signals Intensify

Candlestick Theory
Teradyne's 9.03% decline on October 10, 2025, formed a long bearish candlestick closing near its low ($132.08) after testing resistance at $148, signaling intense selling pressure. This follows a bearish engulfing pattern on October 7, where a high of $150.29 reversed to close at $140.14, undermining prior recovery attempts. Key support now rests at $130 (tested in late September), while the $140–$145 zone (previous consolidation area) acts as immediate resistance. The breach of $140 on high volume confirms bearish conviction.
Moving Average Theory
Teradyne's 50-day MA (~$123) crossed below the 100-day MA (~$118) in early October, signaling deteriorating medium-term momentum. The 200-day MA (~$110) remains upward-sloping, preserving the long-term uptrend. However, the current price ($132.08) trades below all three key MAs, with the 50-day MA now acting as dynamic resistance near $145. The death cross between shorter-term MAs suggests near-term bearish pressure, though the 200-day MA may offer structural support.
MACD & KDJ Indicators
The MACD histogram turned negative in late September, with the signal line crossing below zero on October 7, confirming bearish momentum. The KDJ oscillator (settings 9,3,3) shows the %K line plunging to 15 (oversold), diverging from price action, which could foreshadow a short-term bounce. However, MACD's sustained negative trajectory and expanding histogram bars emphasize continued downward momentum, limiting reversal optimism.
Bollinger Bands
Bollinger Bands (20-day, 2σ) contracted sharply in late September, preceding the breakdown below $140. The October 10 close ($132.08) pierced the lower band, indicating extreme oversold conditions. Band expansion resumed with the sell-off, reflecting rising volatility. Historically, such breaches led to mean-reversion bounces, but high-volume breakdowns increase the risk of extended downside.
Volume-Price Relationship
The October 10 sell-off occurred on 5.74M shares—the highest volume since September 19—validating bearish conviction. Distribution patterns emerged in early October, with elevated volume on down days (e.g., October 7: 3.69M shares, -5.23%) versus lighter volume on rebounds. This volume asymmetry supports sustainability of the downtrend. Notably, the September 22 rally (12.79% on 7.14M shares) lacked follow-through, underscoring weak accumulation.
Relative Strength Index (RSI)
The 14-day RSI collapsed to 25 on October 10, its lowest level in a year and deep in oversold territory. While this reading suggests exhaustion, the RSI has not yet shown bullish divergence relative to price. Historical parallels (e.g., April 2024) indicate oversold RSI readings can persist during high-momentum declines. A rebound above 30 is needed to signal near-term stabilization.
Fibonacci Retracement
Drawing Fib levels from the May 30, 2025, low ($78.60) to the October 10 high ($148), the 23.6% retracement ($136) was breached decisively. The 38.2% level ($118.80) aligns with the 100-day MA and the September 19 swing high ($119.85), creating a high-probability support zone. The 50% retracement ($113.30) converges with the 200-day MA, offering a secondary technical anchor if selling persists.
Confluence and Divergence
Confluence appears at the $118–$120 support zone, where the 38.2% Fibonacci level, 100-day MA, and psychological support intersect—potentially attracting buyers. Bearish consensus dominates near-term indicators (candlestick breakdown, MA crossovers, MACD). However, the oversold KDJ and RSI diverge from price, hinting at a coiled rebound risk. The decisive breakdown below $140 on climactic volume outweighs these divergences, favoring continued downside toward $118–$120 absent a volume-backed reversal.
Probabilistic Outlook
Teradyne exhibits strong bearish momentum, with indicators aligned for further downside toward $118–$120. While oversold conditions may trigger a technical bounce, confluence at $140 resistance and weak volume profiles during prior recoveries suggest rallies remain sellable opportunities. A sustained recovery would require reclaiming $140 with volume exceeding 5M shares.