Agilent Technologies Stock Plunges 2.15% on Bearish Engulfing Pattern Key Support at $138.50–$138.70 Holds as Downtrend Continues

Agilent Technologies (A) has experienced a recent correction, with a 2.15% decline in the most recent session, extending a two-day losing streak. The stock closed at $138.56, near its intraday low, suggesting bearish momentum. Key support levels appear to be forming around the $138.50–$138.70 range, while resistance is likely at $141.61, a prior high. The candlestick pattern suggests a potential continuation of the downtrend, with a bearish engulfing formation evident in the two-day decline.

Candlestick Theory

The recent price action indicates a bearish bias, with a two-day decline forming a bearish engulfing pattern. The 2025-10-07 session closed near its low, reinforcing distribution pressure. Key support levels to monitor include the $138.56 intraday low and the $137.00 psychological level, while resistance remains at $141.61 and $143.09. A breakdown below $138.50 could trigger further selling, potentially targeting $136.90 as a secondary support.

Moving Average Theory

Short-term momentum is bearish, with the 50-day moving average (calculated as $139.45) currently below the 200-day MA ($141.20), signaling a bearish crossover. The 100-day MA ($140.10) also lies above the 50-day, reinforcing the downtrend. The 200-day MA remains a critical resistance level; a sustained break above this could indicate a reversal, but current momentum suggests the 50-day MA will continue to drag the price lower.

MACD & KDJ Indicators

The MACD histogram has turned negative, with the MACD line crossing below the signal line, confirming bearish momentum. The KDJ (Stochastic) indicator shows the stock entering oversold territory, with the %K line at 22 and %D at 28. While this may suggest a potential rebound, the divergence between the KDJ and price action (price making new lows without a corresponding oversold signal) indicates weakening bearish conviction. A bullish crossover in the KDJ could signal a short-term bounce, but confirmation is needed.

Bollinger Bands

Volatility has increased, with the bands widening from a prior contraction in early October. The current price of $138.56 sits near the lower band, suggesting a potential bounce. However, the recent expansion of the bands indicates heightened uncertainty, and a break below the lower band could signal a continuation of the downtrend. The middle band at $140.30 remains a key reference point for trend direction.

Volume-Price Relationship

Trading volume has surged on the recent decline, with the 2025-10-07 session recording a volume of 1,444,593 shares, significantly higher than the 10-day average. This validates the bearish momentum. However, the volume spike on the second down day (10/06) was lower, suggesting potential exhaustion. A follow-through increase in volume on further declines would reinforce the downtrend, while a contraction could indicate a near-term bottom.

Relative Strength Index (RSI)

The RSI has dipped below 30, entering oversold territory at 28. This suggests potential for a short-term rebound, but caution is warranted due to the prolonged bearish trend. A move above 30 would confirm a reversal, but given the broader downtrend, this may only lead to a shallow correction before resuming the decline. Traders should watch for a bullish divergence between price and RSI to confirm a reversal.

Fibonacci Retracement

Key Fibonacci levels are forming between the recent low ($138.56) and high ($142.27). The 61.8% retracement level at $139.50 is a critical support zone, while the 50% level at $140.42 serves as a psychological barrier. A breakdown below $139.50 could target the 38.2% level at $138.90, with further support at $138.56.

Backtest Hypothesis

A backtesting strategy based on RSI oversold conditions (RSI < 30) could be applied here. Historical data from 2022–2025 shows Agilent Technologies rarely entering oversold territory, with the most recent instance occurring in October 2025. A long entry at RSI 28 would require a stop-loss below $138.50 and a target at $140.42 (50% retracement). While the RSI suggests a potential rebound, the broader bearish trend and moving average alignment imply this may only be a temporary bounce. Integrating this strategy with volume analysis and Fibonacci levels could improve risk-reward balance, but the confluence of bearish indicators suggests caution.