Thomson Reuters Drops 1.20% Amid Bearish Technical Signals

Thomson Reuters (TRI) declined 1.20% in the most recent session, closing at $199.17 after trading between $199.05 and $201.34, accompanied by elevated volume of 800,312 shares. This pullback occurs against a broader technical backdrop characterized by several key dynamics.
Candlestick Theory
Recent candlestick patterns reveal emerging caution. The July 10th bullish candle (close: $201.58) failed to sustain momentum, giving way to a bearish July 11th session that closed near its low. This formed a bearish engulfing-like pattern on elevated volume, signaling potential distribution. Immediate resistance is established near $202.30 (July 8th and 10th highs), while critical support resides at $197.01 (July 2nd low) and $198.73 (July 7th low). Failure to hold $198.73 may trigger a test of $195 consolidation support from June.
Moving Average Theory
The price remains positioned bullishly above key moving averages. Though precise calculations are hindered by dataset limitations, the 50-day MA is estimated near $196 and the 100-day MA near $187. Sustained trading above these levels confirms an intermediate uptrend. However, the current retreat from the $202 resistance aligns with the principle that prices oscillate around MAs, and consolidation near the 50-day MA could develop.
MACD & KDJ Indicators
Momentum oscillators reflect weakening bullish bias. The MACD likely maintains a positive histogram but shows narrowing bullish momentum as the fast line converges toward the signal line after the recent peak. The KDJ calculation indicates a drop toward 40 from overbought territory (>80), with J-line retreating sharply. Notably, a bearish divergence formed when price recorded a higher high on July 10th while KDJ registered lower highs, suggesting waning upside momentum. Both oscillators align in signaling potential near-term consolidation.
Bollinger Bands
Volatility remains contained with no significant band expansion. Price has retreated from the upper band ($203–204 zone) toward the mid-band ($199 area) after testing yearly highs. The moderate bandwidth and price holding above the mid-band suggest range-bound action rather than a breakdown. A sustained move below $197 would violate the mid-band, indicating bearish momentum acceleration and potentially targeting the lower band near $194.
Volume-Price Relationship
Volume patterns validate recent bearish signals. The 1.20% decline on July 11th occurred on volume 81% above average, confirming distribution. Previous rallies (e.g., July 7th +0.03% gain) saw below-average volume, suggesting weak conviction. The convergence of price rejection near resistance and expanding down volume signals supply dominance in the near term, though the overall volume profile since April supports the broader uptrend.
Relative Strength Index (RSI)
The 14-day RSI calculation yields approximately 62, in neutral territory. This positions TRI between overbought (>70) and oversold (<30) extremes, offering limited directional bias. However, the RSI’s retreat from the 65–70 area during the price consolidation phase suggests bearish momentum building. Neutral status implies room for further retracement before reaching oversold conditions that might attract buyers.
Fibonacci Retracement
The April–July rally (trough: $160.1 on April 9th, peak: $202.33 on July 8th) establishes key retracement zones. The current pullback retraces only 7.5% of this advance, holding well above the 23.6% support ($192.36). This minimal retracement and adherence to the 38.2% level ($186.20) as major support underpin the ongoing uptrend. A violation of $192.36 would signal deeper correction potential toward $186.
Confluence and Divergence Synthesis
Confluence emerges in bearish near-term signals: rejection at $202 resistance aligns with volume confirmation, MACD momentum loss, and KDJ retreat from overbought. Divergence between price (higher high) and KDJ (lower high) reinforces caution. Counterbalancing this, the broader structure remains constructive with price above moving averages and Fibonacci levels, and RSI neutrality suggests no extreme conditions. Probabilistically, consolidation appears likely near $197–$202, with directional resolution contingent on volume-backed break of either $202.35 resistance or $197 support.