Equinix Plunges 17.82% In Two Days As Death Cross Signals Bearish Trend

Equinix (EQIX) concluded the most recent session at $745, marking a significant 9.62% decline and extending its losing streak to two consecutive days, culminating in a 17.82% drop over this period. This sharp downturn prompts a comprehensive technical evaluation.
Candlestick Theory
The price action presents a pronounced bearish signal. The last two sessions form large, consecutive red candles with minimal lower wicks, indicating sustained selling pressure throughout both trading days and a decisive break below the significant psychological and former technical support near $824-$828, established in late May and early June. Resistance now emerges prominently around the $795-$805 zone, aligning with the high of the latest down day. Further resistance resides near the breakdown point of $824-$828. Strong bearish engulfing patterns formed on June 25th and 26th, confirming selling dominance.
Moving Average Theory
The Moving Average configuration signals a deteriorating trend. The 50-day Moving Average (MA) has decisively crossed below the 200-day MA (Death Cross), a major bearish long-term signal confirming a significant shift in primary trend direction. Furthermore, the price has plunged below the widely monitored 200-day MA ($855-860 approx.), 100-day MA ($870-875 approx.), and 50-day MA ($885-890 approx.), positioning all key moving averages above the price as resistance. The sharp downward slope of the shorter-term MAs underscores powerful bearish momentum.
MACD & KDJ Indicators
Both oscillators reflect intense bearish momentum. The MACD line resides deep in negative territory, significantly below its signal line, with the histogram expanding negatively – a clear sign of accelerating downward momentum. The KDJ indicator exhibits similar bearishness, with the K and D lines plunging well below 20 into oversold territory and maintaining a downward trajectory. While the J line may show extreme oversold levels, the overall alignment suggests sustained downward pressure without signs of reversal confirmation.
Bollinger Bands
Bollinger Bands highlight heightened volatility and bearish extremes. Following a period of contraction (squeeze) in early-mid June, the bands have expanded violently downwards, reflecting the surge in volatility accompanying the price collapse. The price is currently trading near the lower band ($720-725 approx.), a zone typically indicating oversold conditions. However, persistent trading at or below the lower band emphasizes the strength of the current downtrend rather than reliably signaling a quick reversal.
Volume-Price Relationship
Trading volume provides crucial confirmation for the bearish move. The two significant down days (June 25th: 1.35M shares, -9.07%; June 26th: 3.71M shares, -9.62%) saw substantially higher volume compared to the preceding consolidation/uptrend days. The surge in volume on down days validates the intensity of selling pressure. While the extremely high volume on the latest down day might eventually signal capitulation, it currently underscores the move's sustainability until high-volume buying emerges.
Relative Strength Index (RSI)
The RSI has plummeted sharply, currently registering around 28. This places it firmly in oversold territory (<30), theoretically suggesting the potential for exhaustion in selling pressure and a possible technical bounce. However, the RSI is currently trending downwards in alignment with price, meaning no bullish divergence exists to signal internal strength. While oversold, this indicator alone does not contravene the overwhelming bearish evidence; notable caution is warranted as oversold conditions can persist during strong downtrends.
Fibonacci Retracement
Applying Fibonacci retracement to the major swing low near $770 (late Q3 2024) and the all-time high near $940 (February 2025) yields critical levels. The price has decisively breached the 38.2% level ($880-$885) and the crucial 50% retracement ($855-$860), encountering minor support near the 61.8% level ($825-$830) before slicing through it. Current price action finds itself probing the significant 78.6% retracement level ($745-$750). This level aligns strongly with the psychological $750 mark and the recent low. A sustained break below this zone opens the risk of a full retracement to the prior low ($770), or even lower. Recovery would need to reclaim at least the 61.8% ($825-$830) level to suggest a potential reversal attempt.
Confluence and Divergences
A significant confluence of bearish evidence exists: the Death Cross (MA), intense bearish momentum (MACD, KDJ), volume validation of the downtrend, breakdown below key support levels ($880-$885, $855-$860, $825-$830) and the 78.6% Fibonacci level aligning with $750. The RSI's oversold reading is the sole potential counterpoint, but its lack of bullish divergence and its continued downward trajectory render it a secondary consideration amidst the dominant bearish signals. The main divergence currently is the conflict between oversold oscillators (RSI, potentially KDJ level) and overwhelming trend confirmation from other indicators – typically resolved in favor of the trend direction until proven otherwise.