Garmin Drops 3.3% to $248.03 Amid Technical Breakdown and Rising Selling Pressure

Garmin (GRMN) declined 3.30% to close at $248.03 in the latest session, marking two consecutive down days with a cumulative 4.52% loss. The price action shows a decisive bearish candle with the low testing $248, reflecting intensified selling pressure after failing to sustain levels above $255 earlier in the week. This breakdown disrupts the prior consolidation phase observed in early October.
Candlestick Theory
Recent sessions exhibit a bearish continuation pattern, with the latest long red candle closing near its low following a failed recovery attempt near the $258 resistance. This confirms the breakdown below key support at $255.50 (October 8–9 lows), shifting focus to the next significant support at $235.00 (late September swing low). Resistance now solidifies near $255–258, aligning with the breakdown point.
Moving Average Theory
The 50-day moving average (MA) near $250 recently turned from support to resistance after the price closed decisively below it. The 100-day MA ($240) and 200-day MA ($220) remain ascending, preserving the longer-term bullish structure. However, the short-term trend has deteriorated, with the price now below all three major MAs. A sustained sub-50-day MA posture may signal extended downside, though proximity to the rising 100-day MA could offer interim stability.
MACD & KDJ Indicators
The MACD histogram shows accelerating negative momentum, with both the MACD line and signal line in bearish territory. The KDJ oscillator indicates oversold conditions (K: 28, D: 32, J: 20), yet the sharp downward trajectory suggests potential for further weakness before a reversal. Divergence is absent, as both price and momentum indicators align bearishly. The MACD’s bearish crossover near zero reinforces the loss of medium-term momentum.
Bollinger Bands
Bollinger Bands expanded during the sell-off, reflecting rising volatility. Price closed near the lower band ($245), signaling oversold territory but with bearish implications as bands widen downward. The breach of the middle band (20-day MA, ~$250) confirms bearish control. Continued trading near the lower band may precede a technical rebound, though sustained band expansion often accompanies trend continuation.
Volume-Price Relationship
Volume surged 49% to 828,835 shares during the 3.3% decline, validating bearish conviction. This contrasts with lower volume during the preceding sideways phase, reinforcing the breakout’s significance. Distribution patterns have emerged, with higher volume on down days since early October. A reversal would require high-volume recovery to confirm accumulation.
Relative Strength Index (RSI)
The 14-day RSI at 36 approaches oversold territory but lacks bullish divergence. While sub-30 readings would intensify oversold conditions, the current downtrend could extend RSI weakness. Notably, RSI failed to breach 60 during recent rallies, highlighting persistent bearish momentum. Traders should view potential oversold signals cautiously until price action confirms a base.
Fibonacci Retracement
Applying Fibonacci to the rally from the September 19 low ($234.76) to the October 9 high ($261.69), the price breached the 50% retracement ($248.22) to close at $248.03. This opens the path toward the 61.8% level ($245.04). Confluence exists here with the 100-day MA ($240), creating a critical support zone. Failure to hold this area could trigger a full retracement to $235.
Confluence and Divergence
Confluence of bearish signals is evident: the $255–258 resistance aligns with the 50-day MA and Fibonacci 38.2% level; volume confirms breakdown validity; and MACD/KDJ reflect synchronized downside momentum. Divergence is minimal, though KDJ’s oversold reading against a falling price could foreshadow a short-term bounce if supported by other indicators. The Fibonacci 61.8% level ($245) and 100-day MA ($240) offer the next technical focal point for either stabilization or accelerated selling.