Chilean Stocks Slide 1.28% as Technical Breakdown Accelerates

Chart data from TradingView reveals Chilean equities suffered their steepest single-day decline in weeks on May 28, 2025, with the S&P IPSA Index plummeting 1.28% during Wednesday’s session.

The technical breakdown accelerated selling pressure as the index breached key support levels that had held for months. The IPSA’s daily candlestick chart displays a decisive bearish reversal pattern, with the index closing near session lows after testing intraday resistance.

Volume surged during the decline, confirming broad-based selling pressure rather than isolated profit-taking. The index now trades dangerously close to its 50-day moving average, which sits around 8,069 points and represents the next critical support zone.

Technical indicators paint an increasingly bearish picture. The Relative Strength Index dropped sharply from 65 to below 60, signaling weakening momentum as buyers stepped aside.

Bollinger Bands expanded during the session, indicating rising volatility after weeks of compressed trading ranges. The MACD histogram shows deteriorating conditions, with the signal line approaching a potential bearish crossover that could trigger additional selling.

The breakdown occurred near the upper boundary of the long-term ascending channel, suggesting the recent rally may have exhausted itself.

Chilean Market Faces Downward Pressure

Fibonacci retracement levels indicate the next support zone lies around 8,150 points, representing a 38.2% pullback from the May 15 peak of 8,492.60 points. A breach of this level could accelerate declines toward the 8,000 psychological support.

SQM’s disappointing earnings report triggered the broader market weakness, with the lithium producer missing profit estimates by nearly 20%.

The company reported first-quarter net income of $137.5 million versus the $171.2 million consensus, despite achieving record sales volumes. Management’s warning about lower lithium prices ahead due to oversupply concerns weighs heavily on the materials sector.

Recent seven-day leaders included Carozzi advancing 9.5% to CL$4.60k and Sigdo Koppers gaining 5.6% to CL$1.22k. However, Wednesday’s losers dominated the session, with Nitratos de Chile plunging 5.95%, Pasur Forestal dropping 3.89%, and Cristalerias de Chile declining 2.87%.

Falabella and Ripley Corp rounded out the biggest decliners, falling 2.66% and 2.08% respectively. Global markets provided little support, with the S&P 500 declining 0.56% to 5,888.55 and the Nasdaq falling 0.51% to 19,100.94.

European markets remained flat amid ongoing trade uncertainty, while emerging market currencies weakened against the strengthening dollar.

Pension funds maintained their record $334.7 million April inflows, with Banco de Chile receiving $105.9 million and LATAM Airlines attracting $71.9 million.

These institutional flows helped cushion the decline but proved insufficient against broader selling pressure. The Chilean peso held relatively steady at 937.42 against the dollar, limiting currency-related headwinds.

The 1.28% decline represents the IPSA’s worst single-day performance since early April, breaking a streak of relative stability that had characterized recent trading.

Market capitalization remains near CL$187.0 trillion, though continued weakness could threaten the index’s impressive 25% year-to-date advance.