Dynatrace Inc. (NYSE:DT) is currently positioned in Phase 8 of its 18-phase Adhishthana cycle on the weekly charts and is approaching a transition into Phase 9. While this phase is typically associated with bullish breakouts, Dynatrace's current setup tells a very different story.

The stock has declined by more than 17% in recent sessions, and when viewed through the Adhishthana framework, this weakness appears structural rather than temporary. Based on the current positioning, selling pressure is likely to persist through Phase 13. Below is a breakdown of what is unfolding and what may lie ahead.

Analysing Dynatrace Inc's Cakra Structure

Under the Adhishthana Principles, stocks typically form a Cakra structure between Phases 4 and 8. This arc-like formation reflects accumulation and preparation for a breakout, which usually occurs in Phase 9 and marks the beginning of the Himalayan Formation, a powerful bullish sequence.

Dynatrace did begin forming its Cakra back in Phase 4, and the structure remained largely intact through much of the cycle. However, in Phase 8, the stock failed to hold the lower boundary of its Cakra and broke down decisively below the arc. This breakdown triggered what is known in the framework as the Move of Pralayā.

As outlined in Adhishthana: The Principles That Govern Wealth, Time & Tragedy:

"When the underlying breaks the Cākra on the flip side, consolidation typically extends into the Guna triads. The move that follows is highly significant, and selling pressure can be extremely strong. This is called the Move of Pralayā."

True to the principles, the breakdown has been followed by intensified selling pressure. Since triggering the Pralayā move, the stock has struggled to find meaningful support, and bearish momentum has begun to dominate price action.

Importantly, this type of breakdown rarely resolves quickly. Selling pressure typically builds and persists until the stock approaches the later stages of the cycle, often extending through Phase 13. From a structural standpoint, the recent decline may only represent the early stages of a broader corrective phase.

Investor Outlook

With a confirmed Cakra breakdown now in play, Dynatrace's near- to medium-term outlook appears weak. Such breakdowns tend to occur when latent risks exist beneath the surface, risks that may not yet be fully visible in headline fundamentals.

Investors considering fresh exposure should delay any buying decisions for now. The current structure suggests continued downside pressure rather than a sustainable recovery. Until the stock progresses further through the cycle and clearer stabilization signals emerge, Dynatrace remains skewed toward selling pressure rather than accumulation.

Benzinga Disclaimer: This article is from an unpaid external contributor. It does not represent Benzinga’s reporting and has not been edited for content or accuracy.