Venture Global Plunges 5.37% As Bearish Evening Star Pattern Signals Exhaustion Near $15.82 Resistance

Venture Global (VG) declined 5.37% in the most recent session to close at $14.11, concluding a volatile three-day sequence that included a 21.12% surge followed by a 4.41% gain. This price action creates a foundation for technical evaluation across multiple indicators.
Candlestick Theory
The three-day pattern from June 3 to June 5 forms a bearish "evening star" formation: a long white candle (21.12% rally to $14.28), followed by a small-bodied candle with an upper wick testing $15.82, and culminating in a 5.37% decline on above-average volume. This signals exhaustion near the $15.82 resistance. Critical support emerges at $13.88 (June 5 low) and $11.97 (June 3 swing low), while resistance solidifies between $15.05 (June 5 high) and $15.82 (June 4 peak). The $15 psychological level acts as a immediate technical barrier.
Moving Average Theory
The 50-day moving average (approximately $10.70) maintains an upward slope beneath current prices, suggesting intermediate-term support. However, the 100-day moving average (approximately $11.20) converges with the 50-day, indicating weakening momentum. The latest close ($14.11) holding above both averages suggests residual bullishness, but sustained trade below the 50-day MA may signal a broader reversal. The proximity of these moving averages creates a technical inflection zone between $10.70 and $11.20.
MACD & KDJ Indicators
MACD exhibits a bearish crossover on daily readings, with the signal line overriding the MACD histogram after June 4's peak. This divergence from price highs suggests waning upside momentum. Meanwhile, the KDJ oscillator shows the %K line (currently 38) crossing below %D (42) from overbought territory (>80 on June 4). While not yet oversold, the directional shift indicates near-term bearish pressure. Confluence exists between these oscillators, with both signaling loss of upward thrust.
Bollinger Bands
Volatility expansion is evident as bands widened dramatically during the June 3-4 rally (14% intraday range), contracting only marginally on June 5's decline. Price remains near the upper band ($14.90) despite the pullback, indicating persistent volatility risk. The midline ($12.20) provides intermediate support, while a sustained move below would signal bearish momentum. Band contraction to the 2-month average width may precede the next directional move.
Volume-Price Relationship
The June 3 rally occurred on the year's highest volume (18.07M shares), validating breakout momentum. However, the subsequent June 4 advance saw lower volume despite a higher close (17.03M vs prior 18.07M), demonstrating weakening participation. The June 5 decline occurred on moderate volume (8.50M), lacking capitulation signals. This divergence suggests institutional distribution near $15.82 resistance.
Relative Strength Index (RSI)
The 14-day RSI (56.2) retreated from overbought levels (79.6 on June 4) but remains above neutral. While not yet signaling oversold conditions, the 23-point drop over two sessions indicates rapidly cooling momentum. The current reading suggests consolidation may occur before directional resolution. Traders should note RSI's tendency to diverge from price during reversals.
Fibonacci Retracement
Applying Fib levels to the swing low of $11.97 (June 3) and high of $15.82 (June 4) reveals critical thresholds. The 38.2% retracement ($14.35) and 50% level ($13.90) align with recent price action – the June 5 low ($13.88) precisely tested the 50% threshold before closing above it. This suggests $13.90 now constitutes pivotal support. A breakdown below the 61.8% level ($13.25) would open downside toward $11.97.
Confluence and Divergence Observations
Confluence emerges between Fibonacci support ($13.90), candlestick analysis ($13.88 low), and moving averages ($10.70-$11.20) to define downside boundaries. Notable divergences exist between volume patterns (weakening on rallies) and price momentum. MACD/KDJ agreement on waning upside strength and the Bollinger bandwidth signal suggest consolidation likelihood. Should $13.88 support fail, accelerated selling toward the $11.97 swing low appears possible, though the underlying MA structure may provide stabilization above $10.70.