Bearish market sentiment insufficient to push Dolby Laboratories into testing pivotal support level at $84.89
Price action is currently stuck around the active Fibonacci support level of $85

Though in the midst of a 17 day uptrend, gaining a total of 4.28%, ($3.85), The prevailing bullish trend is beginning to fade following Friday's downbeat session. A tough session dominated by bearish sentiment left Dolby Laboratories 34 cents lower, while setting a $84.97 to $86.31 session range.

The stock has been trending positively for about 30 days. The consumer audio electronics company has gained 20.34% since its lowest print of $63.44 earlier this year.

Analysis of Dolby Laboratories's recent price action suggests although Dolby Laboratories, Inc. is down today and was as low as $84.97, it seems to be recovering slightly and climbing away from the $84.89 support line and is now 68 cents above it. Trend analysis indicates that investors are seeking long positions as Dolby Laboratories price action surged above +100 — a key CCI threshold indicating an imminent bullish trend. Friday's price action generated a Japanese candlestick pattern showing a Bearish Harami chart pattern, which is a means of predicting reversals in bull markets. When a Bearish Harami is detected at the top of a prevailing uptrend, it is typically considered a bearish signal and a prelude to a potential trend reversal. Price action remains constrained around the key Fibonacci level of $85 currently serving as support. If price action breaks below, the next Fib hurdle is $84.54. Analysis based on the asset volatility indicates that Dolby Laboratories's upper Bollinger Band® is at $86.38 which indicates a further downward move may follow.

Notwithstanding Dolby Laboratories's appreciation in recent days, the technical outlook suggests its bullish run is now fading.

Dolby Laboratories was not the only decliner in the communication services sector; Netflix went down to $338.63, losing 2.18% after it closed at $346.19 Friday.

On the other hand, positive performances could be seen by looking at other communication services stocks as Alphabet was up 1.17%. Meta Platforms added 0.52% to its value, and traded at $221.49.

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