Dell Technologies Shares Plunge 4.38% as Death Cross and Bearish Indicators Signal Downtrend

Dell Technologies (DELL) closed at $127.89 on 2025-12-17, marking a 4.38% decline from the previous session. The candlestick pattern formed a bearish engulfing structure, with the body of the candle extending below key support at $126.61 (lower shadow) and resistance at $133.74 (prior high). This suggests a potential breakdown from a consolidation range. The 50-day moving average (calculated at approximately $134.50) has crossed below the 200-day MA ($137.00), forming a death cross, while the 100-day MA ($135.20) reinforces the bearish bias. Short-term trends (50-day) are decisively below long-term trends, indicating a weakening momentum.

The MACD histogram has turned negative, with the MACD line (-$2.10) crossing below the signal line (-$1.50), amplifying bearish momentum. The KDJ indicator shows %K at 22 and %D at 30, both trending downward, aligning with oversold conditions. However, the RSI at 28 suggests the stock is near oversold territory, though caution is warranted as prolonged bearish pressure can keep RSI depressed. Divergence between the RSI’s oversold reading and the MACD’s bearish crossover highlights a potential short-term bounce but does not negate the broader downtrend.
Bollinger Bands have contracted recently, with volatility at a 3-month low (band width of 3.5%), suggesting a possible breakout. The price is currently testing the lower band ($126.61), which could act as a temporary floor. If the band contracts further, a directional move—either bullish or bearish—may follow. The volume-price relationship underscores the recent decline, as trading volume spiked to 6.1 million shares on 2025-12-17, validating the bearish move. However, volume has not shown a consistent increase during the decline, hinting at possible exhaustion.
Fibonacci retracement levels derived from the October high ($141.77) to the December low ($126.61) suggest critical support at 38.2% ($133.00) and 50% ($134.20). The current price ($127.89) is below these levels, indicating a deeper retracement. Confluence between the 50-day MA and Fibonacci levels suggests $134.00 as a potential target for a counter-trend rally. Divergences between the RSI’s oversold condition and the bearish MACD/KDJ indicators imply caution: while a rebound is probabilistic, the broader trend remains bearish unless the price reclaims the 50-day MA and breaks above the 200-day MA.
In summary, Dell Technologies faces a high-probability continuation of the downtrend, supported by bearish moving averages, MACD/KDJ alignment, and Fibonacci retracement levels. The RSI’s oversold reading may trigger a short-term bounce, but this is unlikely to reverse the primary trend without a sustained volume-driven rally above $134.00. Traders should monitor the 50-day MA as a dynamic support/resistance threshold and watch for Bollinger Band expansion to signal increased volatility.