In today’s stock of the day, let’s turn our attention to Garmin, which is currently showing signs of technical weakness and a potential bearish setup on the chart.
The most striking feature is the horizontal support level around $205, marked with a pink line. This level acted as strong support throughout previous months, but in early June, we saw a false breakout to the upside, which quickly reversed. The failure to hold above $205 has reclassified this area as resistance and signals clear demand-side weakness. Buyers attempted a breakout but were decisively rejected — a red flag for any bullish continuation hopes.
Adding to this, Garmin’s price action is now contained within a wedge pattern, marked by converging black trend lines. This wedge appears as a classic trend continuation formation, and since the trend preceding it was a downtrend, the pattern strongly favors a bearish breakout.
If the price breaks below the lower boundary of the wedge, it would confirm the prevailing bearish sentiment and likely open the door to further downside. All in all, Garmin is walking a tightrope, and the odds currently favor the bears unless buyers manage a surprise recovery above $205.