L3Harris (LHX) Drops 3.70% in Three-Day 4.91% Decline as Technical Indicators Point to Bearish Bias and Critical Support at $342.85

L3Harris (LHX) has experienced a 3.70% decline in the most recent session, marking a third consecutive day of losses with a cumulative drop of 4.91% over three days. This sustained bearish momentum suggests a short-term downtrend may be consolidating. Candlestick Theory analysis reveals a potential bearish pattern, with key support levels emerging around $342.85 and $340.85 (the recent lows). Resistance levels are evident at $356.02 and $360.30 (prior highs). A break below the $342.85 level could trigger further declines toward $339.61, while a rebound above $356.02 may indicate short-term stabilization. The recent price action, including a long lower shadow on January 27 and a bearish engulfing pattern on January 30, underscores the fragility of the current trend.
Moving Average Theory confirms the bearish bias. The 50-day moving average (approximately $345–$350) currently acts as dynamic resistance, with the price failing to hold above it. The 200-day MA (around $300–$310) provides a broader context of a long-term uptrend, but the 100-day MA ($330–$340) suggests intermediate weakness. A sustained close below the 100-day MA would strengthen the case for a deeper correction. Confluence between the bearish candlestick structure and the MA crossovers reinforces the likelihood of continued downward pressure.
MACD & KDJ Indicators highlight divergences. The MACD histogram remains negative, indicating weakening bullish momentum, while the KDJ (Stochastic) oscillator is in oversold territory (<20), suggesting potential for a short-term rebound. However, the KDJ’s failure to generate a bullish crossover despite the oversold reading implies the bearish trend may persist. A divergence between the RSI and price action (discussed below) further complicates the interpretation, suggesting caution for buyers.
Bollinger Bands show the price near the lower band, reflecting heightened volatility. The recent contraction of the bands in late January followed by expansion aligns with the sharp decline, signaling a potential exhaustion of the downtrend. If the price tests the $342.85 support level and rebounds, the upper band (currently around $365) could become a critical resistance target for a countertrend move. However, the bands’ width suggests volatility remains elevated, increasing the risk of false breakouts.
Volume-Price Relationship reveals mixed signals. The recent decline was accompanied by increased volume (e.g., 2.25M shares on January 30), validating the bearish move. However, volume has not consistently expanded during down days, suggesting the selling pressure may not be entirely robust. Conversely, the lack of volume during attempted rallies (e.g., January 27’s 1.29M shares) indicates weak buying interest. This asymmetry between bearish volume and bullish volume raises questions about the sustainability of the current downtrend.
RSI analysis confirms oversold conditions, with the indicator hovering near 30. While this typically signals a potential reversal, the RSI’s failure to cross above 30 despite the sharp decline suggests the bearish momentum remains intact. A sustained close above 40 would be necessary to alleviate oversold concerns, but this appears unlikely without a clear break above the 50-day MA. Divergences between RSI and price action—such as lower highs in price with higher lows in RSI—could hint at a near-term bottom, though confirmation is pending.
Fibonacci Retracement levels drawn from the January 2026 peak ($369.59) to the subsequent low ($339.61) identify key levels. The 38.2% retracement at $350.50 and 50% retracement at $354.60 may act as dynamic resistance. A break below the 61.8% retracement at $344.50 would likely confirm a deeper correction toward the 78.6% level ($337.50). Confluence between Fibonacci support and the Bollinger Bands’ lower band could create a high-probability area for a short-term bounce.

The analysis highlights confluence at the $342.85 support level, where Fibonacci retracements, Bollinger Bands, and moving averages converge. A successful defense here could trigger a countertrend rally, but a breakdown would likely accelerate the downtrend. Divergences between the KDJ and RSI indicators versus price suggest the bearish momentum may be overextended, though the broader technical landscape remains bearish. Traders should monitor volume patterns and MA crossovers for confirmation of trend continuation or reversal. While the immediate outlook favors further declines, the confluence of oversold indicators and support levels introduces probabilistic opportunities for a short-term rebound.