Woodside Energy (WDS) Plummets 5.63% in Sixth Consecutive Day, 11.53% Drop as Technical Analysis Confirms Bearish Momentum

Woodside Energy (WDS) has experienced a sharp decline in recent trading sessions, with a 5.63% drop on the most recent day, marking the sixth consecutive day of losses and a cumulative fall of 11.53% over the period. This sustained bearish momentum warrants a comprehensive technical analysis to evaluate key drivers and potential turning points.
Candlestick Theory
The price action over the past six days reflects a strong downtrend, characterized by bearish candlestick patterns such as long lower shadows and narrow-bodied candles, indicating aggressive selling pressure. Key support levels emerge around the 15.27–15.58 range

(notably the October 22 high and July 23 low), while resistance is evident near 16.58–16.88 (November 5 and October 23 highs). A potential bullish reversal could be signaled if the price stabilizes above 16.58, forming a hammer or bullish engulfing pattern. Conversely, a breakdown below 14.57 (December 18 low) may indicate further bearish exhaustion.
Moving Average Theory
Short-term (50-day) and long-term (200-day) moving averages confirm a bearish bias, with the 50-day MA (approximately 16.2) and 100-day MA (around 16.5) both below the 200-day MA (~16.7). The current price of 14.58 sits well beneath all three averages, reinforcing the downtrend. A critical juncture will occur if the 50-day MA crosses below the 100-day MA, deepening the bearish signal. The 200-day MA, currently acting as a dynamic support, may offer a last line of defense if the price approaches it.
MACD & KDJ Indicators
The MACD histogram has turned negative, with the line crossing below the signal line, confirming bearish momentum. The KDJ oscillator (Stochastic) shows oversold conditions, with %K at ~20 and %D at ~25, suggesting a potential rebound. However, a divergence between the KDJ %K and price (e.g., %K rising while the price continues to fall) may hint at a short-term reversal. The MACD’s lack of divergence with price action, meanwhile, suggests the downtrend remains intact.
Bollinger Bands
Volatility has expanded recently, with the bands widening as the price approaches the lower band (currently ~14.57). This contraction-expansion pattern suggests heightened uncertainty. If the price closes below the lower band, it may trigger further sell-offs, though a rebound to the middle band (~15.4) could indicate a temporary pause in the decline. The 20-day standard deviation of ~1.05 underscores the heightened volatility.
Volume-Price Relationship
Trading volume has surged during the recent decline, peaking at 2.95 million shares on December 18, validating the price drop. However, the volume has not shown a sharp spike on the most recent session (2.95 million shares), suggesting potential exhaustion. A follow-through increase in volume on a recovery attempt would strengthen bullish conviction, while declining volume during a rebound may signal weak buying interest.
Relative Strength Index (RSI)
The 14-day RSI stands at ~28, firmly in oversold territory, indicating a possible near-term bounce. However, in a strong downtrend, the RSI can remain depressed for extended periods. A closing above 30 would suggest a short-term reversal, but a sustained move above 50 (currently at ~15.8) would be needed to confirm a trend reversal. Divergence between the RSI and price action (e.g., RSI rising while the price falls) may precede a reversal.
Fibonacci Retracement
Applying Fibonacci levels to the key high of 17.6 (September 18) and low of 14.58 (December 18), critical retracement levels emerge at 23.6% (~16.3), 38.2% (~15.8), and 50% (~16.09). The price may find temporary support at 15.8 before testing the 14.57 level. A break below 14.57 could extend the decline to the 61.8% level (~15.2), aligning with recent support from October 22.
Confluence and Divergences
A strong confluence of bearish signals exists at the 14.57 level, where the Bollinger Band, Fibonacci 61.8% retracement, and RSI oversold condition align. Conversely, a rebound above 16.58 (November 5 high) would require confirmation from all indicators, including a bullish MACD crossover and RSI above 50. Divergences between the KDJ and price action suggest the downtrend may face resistance before resuming, though the MACD’s alignment with price indicates the bearish momentum remains robust.