Seagate Stock Plunges 16.53% In 7-Day Selloff As Technicals Signal Bearish Momentum

Seagate Technology (STX) has experienced significant technical deterioration, with the stock declining 3.30% to close at 214.38 in the most recent session. This marks the seventh consecutive daily loss, resulting in a cumulative 16.53% decline over this period, reflecting heightened selling pressure.
Candlestick Theory
The absence of open prices limits traditional candlestick pattern identification, but key support and resistance levels emerge from recent price action. The breakdown below 220.00 confirms this psychological barrier as new resistance. Critical support emerges near 210.00, anchored by the 2025-08-25 swing low of 158.68 and subsequent consolidation at 220–225 in early September 2025. The extended lower wick to 212.63 on 2025-10-10 suggests tentative buying interest near 210, though consecutive long red candles during the 16.53% weekly plunge indicate persistent bearish dominance.
Moving Average Theory
The 50-day SMA (approximately 225–230) crossed below the 100-day SMA (200–205) during the recent selloff, confirming a bearish near-term trajectory. While the price remains above the ascending 200-day SMA (∼175–180), implying the longer-term uptrend is intact, the decisive breach below the 50-day and 100-day SMAs signals intermediate-term weakness. The expanding distance between the current price (214.38) and the downward-sloping 50-day SMA reinforces negative momentum.
MACD & KDJ Indicators
The MACD histogram remains entrenched in negative territory, with the MACD line (-7.5) below the signal line (-5.2), reflecting accelerating downside momentum. Concurrently, the KDJ oscillator shows extreme oversold conditions, with K (5.1), D (8.3), and J (-1.3) all below 20. This divergence—where price makes new lows while KDJ registers higher lows—suggests waning downward momentum. However, given the strong bearish trend, this divergence may only precede a technical bounce rather than a reversal.
Bollinger Bands
Bollinger Bands (20-day, 2σ) expanded sharply during the 7-day decline, signaling increased volatility. Price consistently traded below the lower band until the most recent session when it closed within the bands (214.38 vs. lower band at ∼210). This reversion into the bands following a pronounced breakdown may indicate near-term consolidation. The lower band’s downward slope reinforces resistance at 220–225.
Volume-Price Relationship
Volume spikes accompanied key downside moves: 10.0M shares on 2025-10-07 (-7.34%) and 5.2M shares on 2025-10-10 (-3.30%), validating bearish conviction. However, declining volume during the last two down days suggests selling exhaustion near the 210 support. The absence of significant volume on up days since early October undermines bullish reversals, though a volume-supported rebound above 220 would signal sustainable recovery.
Relative Strength Index (RSI)
The 14-day RSI (26.4) entered oversold territory (<30), with average losses significantly exceeding gains over the past two weeks. While this condition historically precedes short-term bounces for STX, RSI’s divergence warning is absent, as the indicator confirms new lows alongside price. Traders should note that RSI can remain oversold during strong downtrends; thus, a recovery above 40 is needed to signal improving momentum.
Fibonacci Retracement
Using the swing high of 261.29 (2025-10-03) and swing low of 212.63 (2025-10-10), key retracement levels emerge: 23.6% (225.15), 38.2% (232.25), and 50% (236.96). These levels now align with resistance from prior congestion zones and moving averages, creating confluence barriers. A rebound meeting resistance near 225.15 (23.6%) would be technically significant, while sustained trade above 236.96 (50%) would invalidate the bearish structure.
Confluence and Divergences
Confluence occurs at 210–215, where oversold signals (RSI, KDJ), Bollinger Band support, and psychological reinforcement align. A volume-backed bounce from this zone may trigger short-term recovery targeting 225–230. However, bearish convergence dominates higher levels, with Fibonacci, moving averages, and prior support (220–225) creating layered resistance. The only notable divergence is the KDJ/pricing disconnect, which lacks confirmation from MACD or RSI and thus warrants caution. Sustained trade below 210 would invalidate this confluence support, opening risk toward 200 (100-day SMA).