Flex (FLEX) Shares Drop 3.32% on Death Cross as Technical Analysis Flags Extended Downtrend

Flex (FLEX) Technical Analysis
Flex (FLEX) has experienced a 3.32% decline in the most recent session, marking a five-day losing streak with a cumulative drop of 12.81%. The price action reflects bearish momentum, with key support levels emerging near $62.48 (2025-12-17 low) and $56.55 (2025-12-01 low), while resistance is evident at $67.07 (2025-12-17 high) and $70.18 (2025-12-15 high).

Candlestick patterns, such as a bearish engulfing formation on 2025-12-17, suggest continued selling pressure, with the price testing critical support zones.

Candlestick Theory
The recent price action forms a bearish flag pattern, with the $62.48–$67.07 range acting as a consolidation zone. Key support at $62.48 aligns with a prior low, while resistance at $70.18 represents a psychological threshold. A break below $62.48 could target $56.55, with the 2025-11-24 low at $55.47 as a secondary level. Bearish divergence in candlestick bodies and wicks reinforces the likelihood of further declines unless a bullish reversal forms near support.
Moving Average Theory
The 50-day, 100-day, and 200-day moving averages (calculated from historical data) indicate a bearish bias. The 50-day MA (approx. $65.00) has crossed below the 200-day MA (approx. $66.50), forming a death cross. The 100-day MA (approx. $65.50) further confirms the downtrend. Short-term traders may focus on the 50-day MA as a dynamic resistance, with a potential bearish continuation expected if the price remains below these levels.
MACD & KDJ Indicators
The MACD line (-$1.20) and signal line (-$0.80) suggest bearish momentum, with the histogram contracting, indicating waning bearish strength. The KDJ stochastic oscillator shows K at 15 and D at 20, signaling oversold conditions. However, a bearish divergence in KDJ (lower highs in K despite lower price) suggests further weakness. A reversal in the MACD (bullish crossover) or KDJ (K crossing above D) may hint at a short-term rebound, but this remains speculative.
Bollinger Bands
Volatility has expanded as the price approaches the lower Bollinger Band ($61.00–$62.50 range). The band contraction observed in late November (e.g., 2025-11-24) preceded the current downtrend, validating the breakout. A bounce from the lower band may occur if the $62.48 support holds, but a break below this level could trigger a test of the $55.47–$56.55 range.
Volume-Price Relationship
Trading volume has surged during the decline, with the most recent session’s volume (12.88M shares) exceeding the 20-day average. This confirms the sustainability of the downtrend. However, a volume contraction during a pullback could signal weakening bearish conviction, potentially setting up a short-covering rally.
Relative Strength Index (RSI)
The 14-day RSI stands at 28, confirming oversold territory. While this does not guarantee a reversal, a divergence (RSI rising while price falls) may indicate a near-term bottom. The RSI is expected to remain below 30 until the price stabilizes above $65.00, with a target of 35–40 for a potential bounce.
Fibonacci Retracement
Applying Fibonacci levels between the 2025-12-10 high ($72.08) and 2025-12-17 low ($62.48), key retracement levels at 38.2% ($67.24) and 61.8% ($65.02) act as potential support. A break below $62.48 would target the 78.6% level at $58.94, with $55.47 as the final barrier.

Convergence and Divergence
The strongest confluence of bearish signals occurs at $62.48–$65.02, where moving averages, Bollinger Bands, and Fibonacci levels align. However, a KDJ divergence or MACD crossover above the signal line could create a short-term trading opportunity. Divergences between RSI/RSI and price action (e.g., higher lows in RSI with lower price lows) suggest a possible 10–15% rebound from current levels.
Conclusion
Flex’s technical profile favors a continuation of the downtrend in the near term, with $62.48 as a critical support level. A break below this threshold may extend the decline to $56.55, while a sustained close above $65.02 could initiate a corrective rally. Traders should monitor volume patterns and MACD/KDJ divergences for early signs of reversal.