Dell Technologies Plunges 4.97% Amid Strong Bearish Momentum

Candlestick Theory
Dell Technologies exhibits a pronounced bearish trend in the recent six sessions, culminating in a 4.97% decline on August 20, 2025, closing at $128.48. This session formed a long red candle with a high of $134 and low of $126.84, indicating strong selling pressure. The extended downturn signals waning buyer confidence, with critical support now established near the August 20 low of $126.84. Resistance is emerging at the psychological $130 level and further reinforced near the 50-day moving average. A cluster of small-bodied candles preceding this drop suggests consolidation exhaustion, potentially validating the breakdown.
Moving Average Theory
The moving average configuration reveals a deteriorating intermediate trend. The 50-day MA (currently ~$125.15) crossed below the 100-day MA (~$120.80) in late July, generating a death cross that foreshadowed the current correction. The 200-day MA (~$115.50) still slopes upward, maintaining the primary uptrend. However, the price has now breached all three key MAs, with the 50-day acting as dynamic resistance. This bearish alignment suggests near-term downward momentum, though long-term support near the rising 200-day MA may attract buyers if the slide extends.
MACD & KDJ Indicators
MACD (12,26,9) remains entrenched in negative territory, with the signal line consistently below the MACD line since early August, confirming bearish momentum. The histogram shows expanding downward bars, indicating accelerating selling pressure. Concurrently, the KDJ oscillator (14-period) displays an oversold reading (K: 18, D: 22, J: 10), though without divergence. While oversold conditions often precede bounces, the absence of bullish reversal signals in either oscillator suggests persistent downside risk.
Bollinger Bands
Volatility expanded sharply during the six-day decline, with the bands widening as price pierced the lower band on August 20—a classic bearish breakout signal. This breach, coupled with the bands’ expansion, implies heightened bearish momentum. The prior contraction phase in mid-August indicated indecision, resolved decisively to the downside. A close back inside the bands would be necessary to signal stabilization, though the current trajectory favors continued volatility-driven downside.
Volume-Price Relationship
Volume patterns validate the bearish structure. Recent declines occurred on escalating volume, peaking at 7.2 million shares on August 20—well above the 30-day average of ~4.8 million. This distribution phase signifies institutional selling. Conversely, early August recovery attempts saw muted volume, indicating weak conviction. The volume surge during breakdowns confirms sustainable downward pressure, while low-volume rallies lack credibility.
Relative Strength Index (RSI)
The 14-day RSI plunged to 28, entering oversold territory for the first time since April 2025. Historically, Dell has rebounded from RSI levels below 30, but the indicator’s warning nature must be contextualized. The absence of positive divergence and high-volume selling suggests oversold conditions may persist before stabilization occurs. A confirmed RSI reversal above 30 would be the earliest sign of bearish exhaustion.
Fibonacci Retracement
Applying Fibonacci levels to the rally from the April 2025 low ($71) to the July 2025 peak ($141.15) reveals critical retracement zones. The 38.2% retracement ($113.20) briefly supported prices in early August, but the subsequent breakdown now targets the 50% level ($106.00). The 61.8% retracement ($98.80) aligns with the 200-day MA and the April–July swing low, creating a high-probability confluence zone for potential long-term buyers if reached.
Confluence and Divergence Synthesis
Multiple indicators converge to support near-term bearishness: moving average alignment, MACD momentum, and volume-confirmed breakdowns. However, oversold RSI/KDJ readings and proximity to the 50% Fibonacci level suggest heightened reversal potential below $110. The critical divergence lies in Bollinger Band behavior—while volatility expanded during the decline, a contraction without price recovery would indicate bearish consolidation. For Dell Technologies, sustained trade below $126.84 may trigger an accelerated decline toward $113.20–$106.00, where Fibonacci, volume, and moving average confluences could prompt a technical reversal.