Key support level at $83.67 looms for downtrending Dolby Laboratories; currently 62 cents away

• Dolby Laboratories is eyeing the $83.67 support level
• Price action is currently stuck around the active Fibonacci support level of $84.44

Over the last 7 days, Dolby Laboratories has fallen 1.89%. Yesterday's session continued the recent downtrend: the US audio specialist dropped 0.87% early on and traded close to the $84.29 level.

The stock has been trending positively for about a month. This year has been a bright one for the US audio specialist after trading as low as $63.44 and going on to appreciate by 18.44% year to date.

Dolby Laboratories, Inc. made an initial break below its 21 day Simple Moving Average at $84.45, a possible indication of a forthcoming negative trend. Price action remains constrained around the key Fibonacci level of $84.44 currently serving as support. If price action breaks below, the next Fib hurdle is $84. Dolby Laboratories's upper Bollinger Band® is at $86.25 which indicates a further downward move may follow. Despite this, Dolby Laboratories could begin to recover as it approaches significant support, now 62 cents away from $83.67. Dipping below could be an indication that further losses are ahead.

Looking forward, Dolby Laboratories is poised to extend its strong downtrend and continue declining.

Fundamental indicators – United States Services PMI released yesterday at 13:45 UTC with a figure of 53.7, while the previous figure was 52.6.

On the other hand, positive performances could be seen by looking at other communication services stocks as AT&T gained 3.23%, as it traded at $18.22. Netflix was up 0.81%. Verizon was up 0.35%.