VRTX Shares Fall 7.36% as Bearish Indicators and Candlestick Patterns Confirm Downtrend

Vertiv Holdings (VRTX) has experienced a sharp two-day decline, with a 7.36% drop from recent highs, closing at $149.83 on December 17. This breakdown aligns with bearish candlestick patterns, including a long lower shadow and a bearish engulfing formation, suggesting strong selling pressure. Key support is now at the December 17 low of $147.82, with a prior trough near $139.50 (December 11). Resistance remains at the December 16 high of $162.47, which has failed to hold amid deteriorating sentiment.

Moving Average Theory
Short-term momentum is decisively bearish, with the 50-day MA (likely above $160) and 200-day MA (around $145–$150) confirming a downtrend. The price has fallen below both, indicating bearish control. A death cross scenario is plausible if the 50-day MA crosses below the 200-day MA, reinforcing the bear case. The 100-day MA, currently near $155, suggests intermediate-term weakness, with no immediate signs of a reversal.

MACD & KDJ Indicators
The MACD line has crossed below the signal line, signaling declining momentum, while the histogram shows widening bearish divergence. The KDJ stochastic oscillator is in oversold territory (K-line near 20, D-line near 25), but this lacks bullish conviction due to the price’s continued decline. A potential divergence between the RSI and price action—where the RSI fails to make new lows—may hint at weakening bearish momentum, though confirmation is pending.
Bollinger Bands
Volatility has expanded recently, with the price trading near the lower band, a bearish signal. The 20-day SMA (middle band) is above current levels, reinforcing the downtrend. A breakdown below the lower band could trigger further volatility expansion, potentially targeting the $139.50 level.
Volume-Price Relationship
High trading volume during the recent declines validates the bearish move, with the December 17 session seeing 11.96 million shares traded. However, diminishing volume during subsequent sessions may suggest exhaustion, though the current volume profile remains supportive of continued downward pressure.
Relative Strength Index (RSI)
The RSI is in oversold territory (<30), typically signaling potential reversals. However, in a strong downtrend, oversold conditions can persist. A rebound from this level may offer short-term buying opportunities, but the broader bearish context suggests a continuation of the decline unless a breakout above $162.47 occurs.
Fibonacci Retracement
Key Fibonacci levels from the December 11 low ($159.83) to the December 12 high ($174.15) include 38.2% ($162.47) and 50% ($167.00). The current price near $149.83 aligns with the 61.8% retracement level ($144.50), which could act as a critical support. A breakdown below this would target the 78.6% level ($134.00).
Confluence and Divergences
Confluence between Fibonacci support ($144.50) and the Bollinger Bands lower band suggests a high-probability area for a potential bounce or reversal. However, divergences between the RSI and price action—where the RSI fails to confirm new lows—indicate weakening bearish momentum. Traders should monitor volume during any rebound to assess sustainability.


The analysis underscores a bearish bias with multiple indicators aligning to confirm the downtrend. While oversold conditions and Fibonacci support offer potential short-term opportunities, the broader technical picture favors continued weakness unless a breakout above $162.47 occurs. Divergences in momentum indicators suggest caution, as they may signal an impending reversal if the price stabilizes near key support levels.