Dell Technologies Shares Drop 3.11% on Bearish Technical Signals as Three-Day Losing Streak Hits 6.05%

Dell Technologies (DELL) has experienced a sharp decline in its recent trading session, falling 3.11% to close at $120.07, marking a three-day losing streak with a cumulative drop of 6.05%. This downward momentum, coupled with elevated trading volumes and key technical thresholds, warrants a structured analysis to assess potential near-term implications. Below is a data-driven evaluation across multiple technical frameworks.

Candlestick Theory

Recent price action reveals a bearish bias, with consecutive lower closes forming a descending pattern. Key support levels emerge at $118.75 (January 7 low) and $115.12 (January 22 low), while resistance clusters near $123.93 (January 6 high) and $126.42 (December 19 high).

A potential bearish engulfing pattern is evident as the January 5–7 range shows declining highs and expanding bearish bodies. However, a rebound above $123.93 could trigger short-term bullish momentum, though a breakdown below $118.75 may accelerate the downtrend.

Moving Average Theory
Short-term moving averages (50-day at ~$129.50, 100-day at ~$133.00) are well below long-term benchmarks (200-day at ~$137.00), confirming a bearish trend. The 50-day MA crossing below the 200-day MA (death cross) in late November 2025 intensified the downtrend. Price remains below all three MAs, suggesting continued bearish bias. A retest of the 100-day MA (~$123.00) may act as a dynamic resistance; a sustained break below this could target $115.00–$110.00.

MACD & KDJ Indicators

The MACD line (-$3.50) remains below the signal line (-$2.10), with a bearish crossover in early January 2026 reinforcing downward momentum. The histogram’s contraction suggests waning bearish strength, but divergence between price lows and MACD lows indicates caution. The KDJ stochastic oscillator shows oversold conditions (K at 25, D at 30), hinting at potential short-term rebounds. However, bearish divergence (price making lower lows while K fails to do so) raises risks of further declines.

Bollinger Bands
Volatility has expanded recently, with the 20-day band width reaching 4.5%. Price is currently near the lower band ($118.75), a classic oversold signal. A break above the midline (~$121.40) could trigger a reversion toward the upper band ($124.80), but sustained momentum below the midline would likely extend the downtrend. The band contraction observed in late December 2025 preceded this expansion, suggesting a potential continuation of volatility.

Volume-Price Relationship

Trading volumes have surged during the recent decline, with the January 5–7 sessions averaging ~10M shares daily, validating the bearish move. However, volume has dipped slightly in the last two sessions (~10M to ~6.5M), indicating weakening conviction. This divergence may signal an impending reversal, though confirmation above $123.93 is needed for bullish validation.

Relative Strength Index (RSI)

The 14-day RSI stands at ~28, firmly in oversold territory. While this historically suggests a potential bounce, bearish momentum remains intact given the lack of follow-through buying. A move above 35 would be necessary to alleviate oversold conditions, but a failure to do so could push RSI toward 20, intensifying downside risks.

Fibonacci Retracement

Key retracement levels from the December 2025 peak ($141.77) to the January 2026 trough ($115.12) include 23.6% ($132.50), 38.2% ($126.50), and 61.8% ($119.00). Price is currently near the 61.8% level, a critical support zone. A breakdown below $119.00 would target the 78.6% retracement at ~$113.00, aligning with prior support from late 2025.

Conclusion

Confluence between oversold RSI, Bollinger Bands, and KDJ indicators suggests a potential short-term rebound, but bearish momentum from moving averages, MACD, and Fibonacci levels points to a higher probability of continued weakness. Traders should monitor volume dynamics and price action around $119.00–$123.93 for directional clues. Divergences in momentum indicators warrant caution, as they may signal a shift in trend.