Samsara Drops 3.39% Amid Bearish Technicals And Elevated Volume

Samsara fell 3.39% during the most recent trading session (October 7, 2025), closing at $38.72 on elevated volume, underscoring the ongoing corrective phase.
Candlestick Theory
Recent price action reveals a bearish engulfing pattern forming over the October 6-7 sessions, where the October 7 red candle fully consumed the prior day's green candle. This occurred near the psychological resistance of $40.38, highlighting selling pressure after a brief rebound. Key support is evident near $37.25 (early October swing low), while resistance converges at $40.00 (psychological level) and $41.53 (September 8 high). The failure to sustain gains above $40 reinforces this zone as a supply area.
Moving Average Theory
The 50-day moving average (approximately $39.50) has crossed below the 100-day (~$41.20), signaling deteriorating intermediate momentum. The price trades below all major moving averages (50, 100, 200-day), with the 200-day MA near $43.00 acting as formidable overhead resistance. This configuration suggests entrenched bearish sentiment across short and long-term timeframes.
MACD & KDJ Indicators
The MACD line resides below its signal line and the zero axis, confirming bearish momentum dominance. While the KDJ’s K and D lines are approaching oversold territory (sub-30), they have yet to show bullish crossover divergence. The current readings suggest persistent downward pressure, though proximity to oversold levels may warrant monitoring for potential exhaustion.
Bollinger Bands
Bollinger Bands have contracted noticeably in October compared to September's volatility, indicating a period of compression before a potential directional resolution. Price currently tests the lower band (~$37.80), reflecting downside momentum. A sustained break below this band could accelerate selling, while a rebound toward the middle band (~$39.30) may attract resistance.
Volume-Price Relationship
Downside volume has markedly increased during recent declines (e.g., October 7 volume was 8.39M shares vs. October 3’s 3.45M). Conversely, upside volume during rebounds has been comparatively muted, lacking conviction. The elevated volume on breakdowns compared to recoveries suggests distribution and reinforces the sustainability of the current downtrend.
Relative Strength Index (RSI)
The 14-day RSI hovers near 45, retreating from neutral territory after failing to reach overbought (>70) conditions during the October rebound. This mid-range positioning shows neither oversold exhaustion nor overbought risk, aligning with the current downtrend but lacking immediate reversal signals. Momentum remains moderately negative.
Fibonacci Retracement
Using the peak of $58.83 (February 19, 2025) and the trough of $33.46 (April 4, 2025), key retracement levels emerge. The 50% retracement ($46.15) and 61.8% level ($50.40) acted as ceilings during the August-September rebound. Current price struggles below the 38.2% level ($39.90), which aligns with the technical resistance near $40.00. Sustained trade below this level reinforces bearish bias.
Confluence & Divergence
Significant confluence occurs at the $40.00-$40.50 zone, where psychological resistance, the 38.2% Fibonacci level, declining moving averages, and recent candlestick rejection converge, affirming robust overhead supply. The RSI and KDJ show minor nascent oversold signals without strong bullish divergence, limiting confidence in an imminent reversal. Divergence is noted in volume dynamics: selling pressure is high-volume, while rebounds lack proportional volume support. Bollinger Band compression suggests energy is building for a volatility expansion, which given the bearish multi-indicator context, may favor a downside resolution absent positive catalysts.