Seagate Tech Drops 2.03% As Technicals Signal Near-Term Bearish Pressure

Seagate Technology (STX) declined 2.03% in its latest session to close at $146.59, with trading ranging between $144.76 and $149.28 on volume of 3.05 million shares. This recent pullback from its 52-week high of $151.94 sets the context for our technical assessment.
Candlestick Theory
Recent price action reveals a key resistance level near $150.92–$151.94, established by multiple failed breakout attempts in July 2025. The July 22nd session formed a bearish "descending continuation" candle after rejection at $149.28, reinforcing resistance. Immediate support emerges at $144.76 (current swing low), with stronger historical support near $142.45–$141.71. A confirmed breakdown below $142 would likely accelerate selling pressure.
Moving Average Theory
The 50-day SMA ($137.50) and 100-day SMA ($128.80) maintain upward slopes above the 200-day SMA ($110.60), confirming a primary bull trend. However, the recent close below the 20-day SMA ($148.20) signals short-term bearish momentum. Sustained trading below the 20-day SMA may test dynamic support near the converging 50/100-day SMAs, which could act as trend confirmation zones.
MACD & KDJ Indicators
MACD exhibits a bearish crossover, with the signal line maintaining above the MACD histogram since July 15th, suggesting building downside momentum. The daily KDJ confirms this weakness, with the %K line (currently 32) crossing below %D (45) and approaching oversold territory. While not yet at extreme levels, this coordinated momentum deterioration reinforces near-term bearish bias. The monthly KDJ’s overbought reading (80+) warrants caution for longer-term holders.
Bollinger Bands
Bollinger bandwidth expansion to 18% (from 12% three weeks prior) indicates increasing volatility. Price has exited the upper band ($153) and now tests the middle band ($148.20). A decisive close below this midline, coupled with expanding bands, suggests a continuation pattern is developing. Next major support aligns with the lower band ($134.50).
Volume-Price Relationship
The July 2nd rally to $151.94 occurred on elevated volume (6.7M shares), validating that peak as a major resistance level. Recent distribution shows mixed signals: the July 22nd decline saw volume decrease 12% from the prior session, suggesting limited capitulation. However, the absence of accumulation volume during rebound attempts signals weak buying conviction at current levels.
Relative Strength Index (RSI)
Daily RSI has cooled from overbought (73.5 on July 2nd) to a neutral 52.6, erasing prior divergence warnings. While not oversold, its downward trajectory supports further consolidation. Notably, the weekly RSI (65.1) remains above the midpoint, preserving the broader uptrend context. Traders should monitor the 40–45 zone for potential basing signals.
Fibonacci Retracement
Applying Fibonacci to the upswing from $72.82 (April 2025 low) to $151.94 (July high) yields critical levels: 23.6% ($133.27), 38.2% ($121.72), and 50% ($112.38). Current price holds above the 23.6% level, but a breach would target $121–$112. Confluence exists at $133–$135, where the 23.6% retracement intersects the 50-day SMA and psychological support, making it a critical bull/bear inflection zone.
Concluding Synthesis
Confluence is observed at the $144–$142 support zone, where recent swing lows and psychological levels align. However, MACD/KDJ momentum divergence and Bollinger band expansion signal near-term downside risk. Major confluence support at $133–$135 (Fibonacci 23.6% + 50-day SMA) remains the critical bull-defense zone. A decisive break below $142 would likely trigger a test of this region, while recovery above $150.92 resistance would invalidate bearish momentum. The primary trend remains constructive, but short-term risk management is advised.