Garmin Shares Drop 3.11% as Technical Indicators Signal Bearish Momentum

Garmin (GRMN) declined 3.11% in the most recent trading session, closing at $234.29 on elevated volume of approximately 1.26 million shares. This sharp drop breached recent support levels, warranting a multi-faceted technical assessment.
Candlestick Theory
Recent price action shows significant bearish signals. The sharp decline on September 2nd formed a long red candle engulfing the prior two sessions' gains, indicating strong selling pressure. This occurred near the $243 resistance level (August 29th high), reinforcing this zone as a technical ceiling. Critical support now lies near the May 30th swing low of $202.97 and the psychological $200 level. Failure to hold the June 24th trough of $202.71 could trigger further downside.
Moving Average Theory
The 50-day moving average (~$221) has crossed below the 100-day MA (~$225), generating a bearish death cross signal. Price currently trades below both these shorter-term averages, confirming near-term downward momentum. The 200-day MA (~$209) provides the next major support level. Sustained trading below all three key MAs (50, 100, 200-day) would confirm a significant bearish trend shift.
MACD & KDJ Indicators
MACD shows a bearish crossover below its signal line, with the histogram expanding negatively, indicating accelerating downward momentum. KDJ readings (K: 32.1, D: 41.7, J: 12.9) are approaching oversold territory but haven’t yet reached extreme levels (<30). Neither indicator currently shows bullish divergence, suggesting downward pressure may persist near-term.
Bollinger Bands
Volatility expanded sharply during the September 2nd sell-off as price breached the lower band ($232.60). This typically signals an oversold condition that may precede a short-term rebound. However, consecutive closes below the lower band would confirm strong bearish momentum. Bandwidth expansion after the August consolidation phase reflects renewed directional intensity.
Volume-Price Relationship
The 3.11% decline occurred on volume 25% higher than the 30-day average, validating bearish conviction. Notable distribution occurred near the August 29th peak ($243) on above-average volume. Subsequent weakness has consistently coincided with rising volume, undermining confidence in rebound attempts. Any recovery requires confirmation through rising volume on up days.
Relative Strength Index (RSI)
Daily RSI (7-period) has fallen to 44.3, down sharply from near-neutral (56.2) a week prior, but remains above oversold thresholds. Weekly RSI (55.8) still suggests a neutral-to-positive medium-term trend, creating minor divergence with daily weakness. A drop below 40 would strengthen bearish momentum signals.
Fibonacci Retracement
Drawing from the April 9th 2025 low ($170) to the August 29th 2025 high ($243.00), key retracement levels emerge: 38.2% ($217.58), 50% ($206.50), and 61.8% ($195.42). Price breached the 23.6% level ($231.74) during the recent sell-off. The 38.2% retracement near $217.50 now becomes critical support. This level converges with the 200-day MA ($209), reinforcing its technical significance.
Confluence and Divergence
Confluence exists between Fibonacci support ($217.50), the 200-day MA ($209), and the volume-supported $202.71 swing low, making the $217-$209 zone a critical battleground. Bearish confirmation comes from the MACD crossover, volume-backed breakdown below moving averages, and lack of bullish KDJ divergence. Notable divergence exists between the moderately positive weekly RSI and the deteriorating daily momentum, reflecting conflicting time frame signals. This emphasizes using near-term weakness to assess longer-term positioning viability. Given the break of structure and indicator alignment, the bias leans bearish unless price reclaims the $238 resistance with conviction.