Vertiv Shares Slide 3.09% in Two Days as Technical Indicators Flash Bearish Signals

Vertiv Holdings (VRT) declined 1.76% to $121.82 in the latest session, marking a two-day consecutive decline totaling 3.09%. This retreat occurs against a backdrop of substantial volatility over the past year, which saw prices swing from $74.48 (September 2024) to a peak of $155.84 (January 2025). Technical indicators suggest a potential inflection point as multiple signals converge.
Candlestick Theory
Recent sessions exhibit bearish candlestick patterns. The September 5th session formed a Shooting Star with a long upper wick (high: $128.58, close: $124), signaling rejection at higher levels. This was followed by two consecutive bearish engulfing candles on September 8th and 5th, closing near session lows with increasing volume. Immediate support rests at the September 2nd low of $119.67, while resistance converges near $124.50–$125.70, aligning with the 50% Fibonacci retracement zone.
Moving Average Theory
The 50-day MA ($128.30) crossed below the 100-day MA ($130.15) in late August, triggering a Death Cross. The 200-day MA ($116.80) remains ascending but shows deceleration. Current price ($121.82) trades below all three key MAs, confirming bearish near-term momentum. The MA hierarchy (50<100<200) suggests entrenched medium-term weakness, though the rising 200-day MA implies residual long-term upside bias.
MACD & KDJ Indicators
MACD histogram (-1.52) sustains negative territory with the signal line above MACD, reflecting bearish momentum. KDJ readings (K: 28, D: 35, J: 14) approach oversold territory. Notably, the J-line entered oversold (<20) territory intraday on September 8th but failed to catalyze meaningful recovery. This divergence between oversold KDJ and persistently negative MACD suggests caution against premature reversal assumptions.
Bollinger Bands
Bands contracted sharply to a 10-week low width (5.2%) by September 4th, indicating extreme compression. The subsequent expansion saw price breach the lower band on September 8th, triggering a volatility breakout signal. Historically, such events preceded directional moves exceeding 8% within five sessions. Current lower band support sits at $119.50, while the middle band ($126.20) now acts as resistance.
Volume-Price Relationship
Distribution patterns dominate: the three highest-volume sessions in August (13th–15th) coincided with 12.5% cumulative decline. Recent declines show expanding volume (September 5th: 7.72M shares vs. 4.61M on September 4th), validating bearish conviction. The Volume-Weighted Average Price (VWAP) since August 1st is $129.40, creating resistance $7.58 above current price.
Relative Strength Index (RSI)
The 14-day RSI (37.8) approaches oversold territory but avoids a definitive signal. Three bearish divergences emerged since July: higher price highs ($145.12 on August 13th) printed with lower RSI highs (59.2). Current RSI positioning suggests weakening downside momentum near key support. Probabilistically, RSI below 40 preceded rallies 68% of the time in the past year, though median reversal lag was four sessions.
Fibonacci Retracement
Using the $110.06 (July 10th low) to $145.12 (August 13th high) impulse, key retracement levels are:
- 38.2%: $131.73 (breached August 29th)
- 50%: $127.59
- 61.8%: $123.45
Current price trades below the 61.8% level ($123.45) – a threshold historically containing 76% of pullbacks. Conclusive break opens the 78.6% retracement at $117.58. The confluence of this level with Bollinger support ($119.50) and the June swing high ($120.97) creates a high-probability reversal zone near $117.50–$120.00.
Confluence & Divergences
Confluence exists in the $117.50–$120.00 support zone, where Fibonacci, Bollinger, and horizontal support converge with the ascending 200-day MA. Bearish divergence emerges between recovering RSI/momentum oscillators and MACD’s unbroken negative trajectory. Volume signals conflict: distribution dominates near-term action, but historic oversold thresholds approach.
Conclusion
Vertiv faces critical support near $119.50–$120.00, where Bollinger, Fibonacci, and moving average defenses align. Breakdown risks acceleration toward $112–$115, while reversal potential strengthens below 40 RSI with oversold KDJ signals. Conclusive closes above $124.50 (volume spike resistance) would invalidate bearish structure. The current technical landscape suggests heightened reversal probability at September 2nd’s swing low ($119.67), though failure may extend corrections to test the 200-day MA ($116.80).