Danaher Shares Plunge 3.5% as Death Cross Signals Deepening Downtrend

Danaher (DHR) concluded the most recent session at $197.75, marking a significant decline of 3.47%. This extends the losing streak to two consecutive days, resulting in a cumulative loss of 3.78% over this period.
Candlestick Theory
Recent price action for Danaher reveals a pronounced bearish bias. The last two daily candles are substantial red (down) bodies, clearly demonstrating strong selling pressure, particularly on the most recent day which recorded the largest single-day loss in the provided recent dataset. This pattern suggests a breach of prior consolidation around the $200-$205 level established over the preceding week. Key near-term resistance has formed around $205.00-$205.51 (previous highs and closing prices from July 10th-11th). Conversely, immediate support is evident near $194.89 (the recent low from July 14th). A decisive break below this could lead to a test of the psychological $190 level and the significant $188 support area seen repeatedly in June.
Moving Average Theory
The interplay of moving averages points towards a weakening medium to long-term uptrend and a potential emerging downtrend. The price is currently trading below its shorter-term moving averages (50-day and 100-day), which is a bearish near-term signal. Critically, a Death Cross formation occurred in mid-2025, where the 50-day MA ($202.50 estimated) crossed below the 200-day MA ($204.00 estimated). This significant bearish signal confirmed a shift in momentum. The 200-day MA ($204.00 estimated) now acts as substantial overhead resistance. Sustained trading below the 100-day MA ($198.50 estimated) reinforces bearish control.
MACD & KDJ Indicators
Both momentum oscillators align bearishly. The MACD line is firmly below its signal line and in negative territory, accelerating its descent, indicating strong downward momentum without signs of slowing. The KDJ indicator reflects deep oversold conditions, with the %K and %D lines both recently diving below the 20 level (reading around 15 and 18 respectively). However, the steep downward trajectory without stabilization suggests oversold conditions may persist before any meaningful recovery attempt. Neither oscillator currently signals a reversal is imminent.
Bollinger Bands
Bollinger Bands show a noticeable contraction since late June, indicating significantly reduced price volatility (a Bollinger Band "squeeze"). Danaher's price has recently pressed against the lower band during the sharp decline on July 14th. While a touch of the lower band can sometimes indicate an oversold condition, the context of a developing downtrend and lack of reversal confirmation (e.g., a bullish engulfing candle) means this often precedes further downside continuation or the start of a new, volatile leg lower following the squeeze. A decisive close back inside the bands or towards the middle band ($201.00 estimated) would be needed to suggest bearish pressure might be easing.
Volume-Price Relationship
Volume analysis corroborates the bearish price movement. The July 14th sell-off occurred on substantially elevated volume (4.92 million shares) compared to the preceding days, validating the strength of the downside breakout. Recent price declines (e.g., July 11th) also occurred on higher volume than the preceding mild advance days. Notable high-volume reversal points in the dataset (e.g., May 15th buying surge, April 9th high-volume advance) are absent from the most recent action. The high-volume sell-off suggests conviction behind the current move lower.
Relative Strength Index (RSI)
The 14-period RSI (approximately 32) resides in the lower half of its range and is approaching the oversold threshold (30). While this traditionally warns of a potential bounce due to excessive downside momentum, it remains above the 30 level and, crucially, is not yet diverging positively from price. In established downtrends, RSI can remain oversold for extended periods. The current RSI level signals weakness but is not, by itself, a definitive reversal signal. A subsequent bullish divergence (price making lower lows while RSI makes higher lows) would offer a stronger warning sign of weakening downward momentum.
Fibonacci Retracement
Applying Fibonacci retracement to the significant rally from the April 2024 low ($171.92) to the July 2025 high ($208.15) identifies key levels. The 50% retracement sits near $190.03, and the 61.8% level aligns closely with the critical $188 support zone observed frequently in June. Danaher has already breached the 38.2% retracement level ($195.74) during the recent sell-off. The $188-$190 zone represents a crucial confluence area combining the 50% and 61.8% retracement levels and significant historical price support. A sustained break below this zone would open the door for a deeper retracement towards the 78.6% level near $182.
Conclusion
Multiple technical perspectives converge to present a decidedly bearish outlook for Danaher in the immediate term. Confluence is evident at resistance near $205 (recent highs, 200-day MA) and at the critical support zone around $188-$190 (Fibonacci levels, historical lows). Key bearish factors include the confirmed Death Cross, sustained high-volume selling breaking key support at $200, bearish MACD configuration, KDJ in steep oversold territory without reversal signals, and the price position near the lower Bollinger Band within a volatility squeeze in a downtrend. While oversold conditions exist (RSI near 32, KDJ sub-20), they do not yet present credible bullish divergence or reversal signals against the prevailing strong downward momentum. The $188-$190 support confluence represents a pivotal level; a breach could accelerate losses. Traders should seek substantial bullish confirmation signals before considering the bearish trend exhausted.