Becton, Dickinson and Company Price Analysis Powered by AI

BDX: After the Gap—Why the Breakdown Isn't Over (Comprehensive Sell Analysis)

Timeframe analyzed: Intraday through daily; focus on most recent 1-2 month downtrend and culminating intraday behavior.
Current Price: $173.14
Recent Low: $165.15 (05/06)
Recent High Before Gap: $207.08 (04/30)

Price peaked at $250+ in late January 2025, began a rolling sell-off.
A pronounced gap-down between 4/30 ($207.09 close) and 5/1 ($169.54 close) forms a classic breakaway gap.
- This sort of move is usually driven by overwhelmingly negative news/earnings.
- Gaps of this magnitude are rarely fully retraced in the short/medium term, especially when accompanied by enormous volume (13M shares vs previous 1.5-3M avg).
Subsequent days showed panic selling and capitulation as price dropped to $165.15.

Following the gap, BDX found support in the $166-$168 zone.
Bounced to $175.34 (5/12, 5/13) and briefly to $177 (5/19), but couldn't break higher, forming a lower high.
Selling pressure resumed, with current price settling near $173.14.

Today’s move: Opened around $176, faded all day to close the session at $173.14.
Consistent intraday lower highs and lower lows suggest active selling.

ATR (Average True Range) has skyrocketed since the gap-down.
Volatility is high and trending down, typical after an event-based sell-off but shows no sign of a bullish reversal.

Huge volumes on the gap-down and following two days show institutional exit.
Subsequent bounce to $177 was on lower volume, characteristic of a dead-cat bounce.
Volume is not supporting accumulation; latest intraday volumes rise on down moves, fall on upswings.

50EMA/100EMA/200EMA (extrapolated):
- Price is dramatically below all commonly used major moving averages, confirming a severely bearish structure.

RSI on daily reached severely oversold (near 20) after the gap, but recent bounce only unwound this modestly.
As of today, RSI likely remains below 40, not showing a reversal.

After piercing the lower band dramatically on the gap, price has reverted slightly but travels along or below the 20MA median, with bands not yet tightening—suggesting the sell-off is not exhausted.

From $207.09 to $165.15, the recent bounce didn't even reach the 38.2% retracement (around $180.2). The bounce topped at $177.05.
This failed retracement suggests sellers are in firm control.

Dead Cat Bounce after a massive earnings-related gap-down is a classic bearish continuation pattern.
No double bottom or reversal structure.
Ongoing lower highs and lows: $175.34, $177.05, then fade.

Peers in medical devices sector are either stable or only modestly down. BDX underperformance signals company-specific issues.
News likely negative (not shown), but price action is definitive.

Assuming this sector, put open interest likely surged, indicating hedging and short speculation.

Support Level: Near-term support at $170 (recent bounce zone), but main capitulation low at $165.15.
Resistance: $177 (post-gap lower high), then $180.20 (Fibonacci 38.2%).
Stop: Any short would have a stop above $180.50–$182.
Potential Downside Target: Retest or break of $165.15. Further breakdown could target $160 or $155 on momentum selling if $165 is lost.

Trend: Sharply bearish—structure, momentum, and failed retracement all point to more downside ahead.
Set-up: Today’s weak close after the failed rally to $177 sets up a new leg lower.
Catalyst: Event-driven gaps do not usually recover quickly; fundamental issues may persist for quarters.
Optimal Entry: Short/Sell opportunity on a breakdown of today’s low ($173.00). Slightly above at $173.10 is optimal for risk/reward given tight consolidation.
Profit Target: Initial target at $165.50, just above the May 6th low for prudent take-profit. Aggressive traders could target lower if momentum persists.

Rationale: Everything—trend, momentum, volume, structure—supports further downside. No evidence of reversal. Failed bounces signal distribution. Tight risk by shorting close to breakdown with stop above $177.