Argentina’s Merval Suffers Steepest Two-Day Drop in Months as Bears Tighten Grip

Official stock exchange data confirms a sharp selloff in Argentina’s S&P Merval index on June 17, 2025, with the benchmark closing at 2,072,440.28, down 2.57% for the day.

This marks the lowest close since May 8 and extends a two-day slide to 5.27%, the steepest since April. The Merval now stands 26.8% below its January record, erasing much of this year’s earlier gains.

Charts from the Buenos Aires exchange show the index opened weak and failed to recover, closing near session lows. Sellers dominated as the Merval broke below key support levels, including the 200-day moving average.

The daily candlestick chart reveals a clear downward trend, with the price hugging the lower Bollinger Band and failing to bounce at traditional support. Technical indicators reinforce this negative outlook.

The Relative Strength Index (RSI) sits at 38.26 on the daily chart, reflecting persistent bearish momentum but not yet signaling extreme oversold conditions. The 4-hour RSI is even lower at 32.66, approaching levels where short-term rebounds sometimes occur.

However, it does not confirm any reversal. The Moving Average Convergence Divergence (MACD) remains in negative territory on both timeframes, with the histogram showing no sign of a bullish turn.

All major moving averages, including the 50, 100, and 200-day, now hover well above the current price, underlining the strength of the downtrend.

Merval Faces Persistent Selling Pressure

Volume analysis from the official charts does not show a significant spike, suggesting this decline reflects steady selling rather than panic. The lack of a volume surge implies that institutional investors are not yet stepping in to buy the dip.

Sector and stock-level data show broad weakness. The biggest losers included financials and energy names, which bore the brunt of the selloff.

Meanwhile, a handful of defensive stocks in consumer staples managed to limit their losses, but no major winners emerged in this session. The breadth of the decline signals a lack of safe havens within the index.

In summary, the Merval’s technical picture and relative performance confirm that sellers remain firmly in control. The index faces strong resistance above and lacks clear signs of a bottom. Until momentum shifts or buyers return in force, the path of least resistance remains down.

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This article was produced by The Rio Times’ automated newsroom system. How we use AI · Report an error · Editorial responsibility: Matthias Camenzind, Editor-in-Chief