TE Connectivity Drops 3.55% Amid Market Uncertainty Technical Indicators Signal Further Downside Risk

TE Connectivity (TEL) declined 3.55% in the most recent session to close at $214.57, marking its second consecutive daily loss and bringing the two-day decline to 4.39%. This retreat comes amid broader market uncertainty as prices retreat from recent highs near $226.40 observed earlier in the week. Below is a technical assessment incorporating multiple frameworks.
Candlestick Theory
Recent candlesticks reveal a shift in momentum. The price formed a bearish engulfing pattern on October 9–10, as the second day’s decline completely consumed the prior day’s gains, closing near the session low. Immediate support is established at $214.29 (October 10 low), with a critical psychological buffer near $210. Resistance is anchored at $224.25 (October 10 high) and the $226.40 peak from October 9. A sustained break below $214 could accelerate selling pressure.
Moving Average Theory
The 50-day moving average (MA) at $210.45 currently underpins the price, while the 100-day MA ($205.20) and 200-day MA ($190.30) slope upward, confirming a longer-term bullish bias. However, the short-term trend is deteriorating as the price trades below the 5-day MA ($220.28). A potential bearish crossover looms if the 50-day MA crosses below the 100-day MA, though such a signal remains nascent. The price remaining above all three key MAs still suggests structural support for the primary uptrend.
MACD & KDJ Indicators
The MACD histogram has turned negative since October 8, signaling waning bullish momentum as the signal line crosses below the MACD line. KDJ metrics align with this shift: the %K line (14.2) has plunged below %D (26.8) into oversold territory, while the J-line at -11.0 reflects acute selling pressure. These concurrent bearish signals hint at near-term consolidation or further downside before stabilization.
Bollinger Bands
Volatility has expanded sharply, with the price breaking below the 20-day Bollinger Band’s lower boundary ($218.40) on October 10—a rare event suggesting oversold extremes. The bandwidth expanded by 15% over three sessions, confirming heightened volatility. Historically, such deviations often precede mean-reversion bounces, but sustained trading below the lower band warrants caution for continued downside.
Volume-Price Relationship
Volume surged to 1.15 million shares on October 10’s decline, exceeding the 30-day average and confirming bearish conviction. This distribution pattern contrasts with the lower volume during the prior rally to $226.40, suggesting weak accumulation. The volume-driven breakdown below $218 supports the bearish candlestick pattern, implying the correction may extend unless accompanied by equally forceful buying volume.
Relative Strength Index (RSI)
The 14-day RSI at 32.8 approaches oversold territory, though it has not yet breached the 30 threshold that typically signals exhaustion. While this could foreshadow a technical rebound, it remains a warning rather than a reversal trigger—especially given the MACD/KDJ momentum breakdown. Consecutive closes below $214 may drive RSI into deeper oversold levels before stabilization occurs.
Fibonacci Retracement
Applying Fibonacci levels to the swing from the July 22 low of $180.47 to the October 9 peak of $226.40 reveals critical thresholds. The 38.2% retracement at $209.20 aligns with the 50-day MA and psychological $210 support. A breach here would target the 50% level at $203.45. The current pullback (4.39%) sits just above the 23.6% level ($217.40), which now acts as resistance, with the 61.8% floor at $197.70 if selling intensifies.
Confluence & Divergences
Notable confluence exists between the $209–$210 zone (50-day MA + 38.2% Fibonacci) and oversold signals from KDJ and Bollinger Bands, which could catalyze a rebound. However, bearish divergence persists—declining momentum (MACD), expanding downside volume, and volatility expansion contrast with the RSI’s tentative oversold reading. Absent volume-supported reversal patterns near $210, the technical structure favors continued correction toward $203–$197 before basing. Traders should monitor $214 support and RSI confirmation below 30 for directional cues.