Keysight Stock Plunges 3.04% as Technical Indicators Flash Bearish Signals

Keysight's recent trading session shows significant bearish pressure, closing at $158.51 with a 3.04% decline, extending losses over two consecutive days to 3.60%. This downside momentum warrants a thorough technical assessment using the specified frameworks.
Candlestick Theory
Keysight's recent candlesticks exhibit pronounced bearish conviction. The latest two sessions formed consecutive long red candles with minimal lower shadows, indicating sustained selling pressure closing near intraday lows. A clear support zone emerges near $152.85-$154.10, aligning with the August 19th low and the May 2025 swing lows. Immediate resistance caps upside near $163.40-$164.48, a level tested multiple times in early August 2025 and acting as a breakdown point during the recent decline. The failure to hold above $163.40 signals a bearish shift in the immediate term.
Moving Average Theory
The moving averages depict a deteriorating trend structure. The 50-day MA (calculated at ~$163.30) crossed below the 100-day MA (~$164.80) last week, generating a Death Cross signal. More significantly, the current price ($158.51) trades well below the primary long-term benchmark, the 200-day MA (~$162.00), confirming an entrenched bearish medium-term trend. This alignment of shorter-term MAs below longer-term ones, combined with price below all key averages, strongly suggests bearish control across multiple timeframes.
MACD & KDJ Indicators
The MACD (12,26,9) resides deep in negative territory (-2.15), with the signal line maintaining a bearish trajectory below the MACD line – confirming sustained downward momentum. However, the histogram shows minor deceleration in downside momentum. The KDJ indicator presents conflicting signals: The K-line (19) and D-line (25) have plunged deeply into oversold territory (<20), suggesting potential exhaustion among sellers and a high chance of a short-term bounce. Yet, the J-line (-13) shows continued downward slope, reflecting residual bearish pressure. A divergence exists as price makes new lows while KDJ attempts to stabilize – a tentative early sign of waning downward momentum.
Bollinger Bands
Heightened volatility is evident from the Bollinger Band expansion over the past week. Price has aggressively breached the lower Bollinger Band ($160.25, 20-period, 2σ), often a signal of oversold conditions, but also indicating intense downside momentum. Bandwidth has expanded significantly compared to the consolidation period in June/July 2025. Historically, a close below the lower band followed by a move back inside it can precede a relief rally. The breakdown occurred on high volume, adding credence to the bearish signal but also indicating capitulation might be near.
Volume-Price Relationship
Volume analysis validates recent bearish moves. The decline on August 20th occurred on volume (2.60M shares) markedly higher than the preceding consolidation days (e.g., 841k on Aug 14th), confirming strong selling conviction. Conversely, the earlier rally attempts during late July encountered weak volume compared to the subsequent sell-off volume. This negative volume-price relationship highlights a lack of committed buyers and strengthens the bearish case. Sustained high volume on downtrend days signals distribution.
Relative Strength Index (RSI)
The 14-day RSI (currently 33.2) has descended sharply from neutral levels last week. It now approaches oversold territory (<30) but has not breached it decisively. While this level suggests potential exhaustion among sellers and may precede a short-term technical bounce, it should be noted that RSI can remain in oversold territory for extended periods during strong downtrends. The RSI reached 28 during the May 2025 decline, offering a historical reference. Caution is warranted as the oversold signal hasn't yet shown divergence with price.
Fibonacci Retracement
Applying Fibonacci levels to the primary identifiable uptrend from the April 24th, 2025 low of $143.79 to the February 21st, 2025 peak of $185.23 reveals critical support thresholds. The 61.8% retracement level sits at $158.00, aligning almost precisely with the recent close ($158.51) and the August 20th low ($152.85). This level represents a major technical confluence zone. A sustained break below $158.00 targets the 78.6% retracement near $152.70. Holding near the 61.8% level is crucial for bulls to prevent a deeper decline towards the $152-$153 support band established in May.
Synthesis
Multiple technical studies confirm a strong bearish posture for Keysight in the near-to-medium term. Confluence exists at the $152.85-$158.00 zone, combining significant Fibonacci support, the Bollinger Band breakout point, and June/July lows. A failure to hold this critical support could see a swift decline towards the $148-$150 region. However, counterbalancing signals like the deeply oversold KDJ and proximity to oversold RSI, coupled with the volatility spike indicated by Bollinger expansion and extremely high selling volume on the August 20th plunge, suggest a high probability of a near-term technical bounce or consolidation developing. Traders should monitor price action around the $158.00 and $152.85 Fibonacci levels vigilantly. The bearish MA alignment and negative MACD confirm that any bounce likely faces strong resistance near the 50-day MA at $163.30, reinforced by the broken $163.40-$164.48 candlestick support. A confirmed break above the 50-day MA would be needed to signal a potential trend reversal.