Agilent Extends Slide With 3.71% Two-Day Drop As Technicals Signal Deepening Bearish Momentum

Agilent Technologies (A) declined 1.71% in the most recent session, extending its losing streak to two consecutive days with a cumulative 3.71% drop. This negative momentum follows a sharp 5.95% sell-off on July 15, which occurred on elevated volume, reinforcing near-term bearish sentiment. Below is a technical assessment integrating multiple indicators to evaluate the stock’s trajectory.
Candlestick Theory
Recent candlestick patterns reveal a bearish trajectory. The July 15 session formed a long-bodied bearish candle with a high of $119.76 and close near lows at $112.94, signaling strong selling pressure. The subsequent two sessions (July 18 and July 21) confirmed follow-through weakness with consecutive red candles breaching the $114–$115 support zone. The July 21 low of $110.75 now serves as immediate support, while resistance is established near $113.66 (intraday high from July 21) and $117.20 (July 18 high). A decisive break below $110.75 may trigger accelerated selling toward the $107–$108 range.
Moving Average Theory
The moving average configuration underscores entrenched bearish momentum. The 50-day MA (currently near $116.50) crossed below the 100-day MA (approximately $120.20) in early July, signaling a "death cross" that typically precedes extended downtrends. Price action has consistently traded below all three key moving averages (50-day, 100-day, and 200-day) since mid-July, with the 200-day MA near $122.40 reinforcing the dominant downtrend. The widening gap between the 50-day and 200-day MAs further validates bearish structural deterioration.
MACD & KDJ Indicators
The MACD histogram remains entrenched in negative territory, with the signal line persisting above the MACD line since early July. This configuration suggests sustained bearish momentum, though the histogram’s minor contraction at July 21’s low may foreshadow short-term exhaustion. Concurrently, the KDJ oscillator entered oversold territory (K and D values sub-25) on July 21. The J-line neared 0, indicating extreme downside momentum. While this oversold reading hints at potential mean-reversion, it lacks bullish confirmation without a K-line crossover above D-line. A bearish divergence persists between KDJ’s oversold bounce attempts and price making lower lows.
Bollinger Bands
Bollinger Bands reflect heightened volatility, with bandwidth expanding sharply during the July sell-off. Price recently tested the lower band ($110–$111) after breaching the 20-day moving average (mid-band) at $115. A close below the lower band on July 21 signals potential oversold conditions but also risks continuation if volatility persists. The band expansion supports downside momentum, though a reversion toward the mid-band could materialize if volatility contracts. Traders should monitor whether price stabilizes above the lower band to avoid further downside acceleration.
Volume-Price Relationship
Volume analysis validates bearish momentum. The July 15 sell-off occurred on a volume spike of 3.95 million shares (vs. 20-day avg ~2.1 million), confirming institutional distribution. While recent sessions saw moderated volume (2.06 million shares on July 21), the price decline on above-average activity underscores persistent selling pressure. Lack of volume support during minor rebounds (e.g., July 16–17) further questions sustainability of recovery attempts, favoring downside follow-through.
Relative Strength Index (RSI)
The 14-day RSI declined to 32 on July 21, nearing oversold territory (sub-30). While this hints at waning downside momentum, RSI remains in a descending channel consistent with the broader downtrend. Notably, RSI has not registered oversold since April’s sharp decline, suggesting caution against premature reversal bets. For a credible bullish signal, RSI would need to reclaim 50 and exhibit divergence relative to price. Currently, the indicator aligns with bearish price action.
Fibonacci Retracement
Applying Fibonacci retracement to the swing from April’s low of $100.26 to July’s high of $121.86, the 78.6% retracement level at $106.40 marks critical support. The July 21 low of $110.75 is testing the 61.8% level ($110.18), creating a confluence zone with the Bollinger Band lower boundary. A decisive break below $110 risks targeting the 78.6% retracement. Conversely, resistance resides at the 50% level ($111.06), with the 38.2% level ($112.10) offering secondary overhead supply. The 61.8%–78.6% retracement zone may serve as a pivot for directional resolution.
Confluence and Divergence Observations
Confluence of bearish signals is evident: (1) Price below all key moving averages with a death cross, (2) MACD histogram in negative territory, (3) volume-confirmed breakdowns, and (4) RSI/KDJ oversold readings lacking bullish reversals. A notable divergence exists between price making lower lows and Bollinger Band width expanding—a volatility signal often preceding sharp moves. The 61.8% Fibonacci support at $110.18 now presents a critical technical inflection; failure here could trigger cascading stops toward $106–$107. Reclaiming the 50% Fib level ($111.06) may encourage short-term mean-reversion, particularly if supported by RSI divergence or KDJ crossover. Probabilistically, the confluence of negative indicators favors sustained downward pressure absent a catalyst-driven volume surge.