Arm stock extends losses while sellers remain in control

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Arm slides 5.38% to $191.8 today

Highlights

Arm Holdings reported fiscal Q2 revenue of $1.44 billion, up 27% from last year and above consensus expectations.
Non-GAAP diluted EPS reached $0.52, also beating analyst estimates as operational progress continued.
Shares of Arm Holdings trade with strong bearish momentum below major moving averages, with price projected between $173.13 and $210.47 over the next four sessions and upside probability viewed as very low.

Earnings beat as revenue growth fails to stem selling

Arm Holdings reported fiscal second-quarter revenue of $1.44 billion, marking a 27% increase from the prior year and exceeding consensus expectations, according to Seeking Alpha. Non-GAAP diluted earnings per share reached $0.52, also ahead of analyst estimates. The stronger-than-expected financial results highlighted continued progress in Arm’s business operations, though price action has remained under broader selling pressure.

Bearish momentum confirmed as multiple indicators turn negative

On the hourly chart, ARM trades below the MA-20 at $199.25, MA-50 at $213.17, and MA-200 at $230.29. The Ichimoku Kijun at $199.78 represents the nearest resistance. Indicators show MACD and ADX confirming downside momentum, while RSI and Stoch RSI are in neutral territory. CCI is oversold, which could suggest exhaustion of selling pressure, and Bull/Bear Power remains negative at –4.55, affirming intraday seller dominance. The Awesome Oscillator is currently neutral.

Downside favored as trading range narrows on volatility

Over the next four trading days, price is expected to fluctuate between $173.13 and $210.47 based on recent volatility. Probability scenarios suggest a high likelihood of continued downside, with a rebound seen as much less probable. The baseline case sees ARM staying within this range. Upside movement could emerge if the price recovers above the $199.78 resistance, while a breakdown below the lower boundary would point to higher risk of acceleration toward $173.13.

Viktoras Karapetjanc, expert at Traders Union, sees Arm’s fundamental backdrop as robust, with notable revenue and earnings growth confirming operational strength. However, price action remains weak and sellers dominate as technical levels break down. The macro environment and sentiment pressure may have overpowered today’s positive results. He believes a decisive recovery above $199.78 would be needed to shift momentum. "Given ARM’s confirmed earnings strength, I remain constructive and see a rebound as possible once selling pressure abates."

Previously it was reported that Arm's revenue growth has been driven by rising adoption of its chip designs in artificial intelligence and cloud infrastructure. The current trading landscape adds a new dimension, with downside momentum prevailing and the $173.13 level representing a critical risk threshold for continued price weakness in the near term.

Source of Data: ARM Price Analysis by TU

The analysis is based on a proprietary model combining technical, on-chain, and expert data. Not investment advice. See methodology

The information is based on forecasts and does not constitute investment advice or a guarantee of future results. Market conditions may change. See our Disclaimer and Editorial Integrity for details.