Darden Restaurants (DRI) has been under selling pressure the past three months and while DRI is oversold, it has yet to display the typical technical clues that indicate it is finished declining.
In the chart above, we can see the three-month decline with prices close to a test of the May lows and support. We can also see the impending death cross of the 50-day moving average (MA) going below the 200-day average, easing On-Balance-Volume (OBV) line.
This longer-term chart of DRI also gives us a bearish view of the price action. We see prices below the 40-week MA. The OBV line has actually been declining and not just easing as we saw in the first chart. The Moving Average Convergence Divergence (MACD) oscillator is bearish. DRI could make an oversold rally at any time and it could stop declining here, but if the decline continues, we can see the next support on this chart at $55.