BDX Gains 1.34% In Two Days As Technicals Show Early Reversal Signs

Recent Performance of Becton, Dickinson (BDX)
BDX rose 0.81% in the most recent session, marking two consecutive days of gains totaling 1.34%. This upward movement follows a volatile year characterized by a sharp 18.13% single-day decline on May 1, 2025, after which the stock established a base near $165.
Candlestick Theory
Recent price action shows consolidation after the steep May sell-off. Small-bodied candles over the last month indicate indecision, with $175–176 acting as a clear resistance zone (tested on June 24 and 25). Support is emerging near $167–168, reinforced by repeated bounces from this level in late May and early June. A decisive close above $176 would signal bullish reversal potential, while failure to hold $167 may renew downside pressure.
Moving Average Theory
The long-term 200-day MA (~$225) and 100-day MA (~$210) remain well above the current price ($172.25), confirming the primary downtrend. However, the short-term 50-day MA has flattened near $174.50, converging with recent prices. This proximity suggests weakening downward momentum. Sustained trading above the 50-day MA would imply a potential trend shift, though the stock remains technically bearish below the 100-day and 200-day averages.
MACD & KDJ Indicators
The MACD histogram shows diminishing bearish momentum, with the MACD line converging toward the signal line near the zero axis. KDJ indicators reflect improving short-term sentiment: The %K line (28) recently crossed above the %D line (24) from oversold territory (<20 on June 20). This crossover aligns with the price rebound but requires confirmation through sustained momentum. Neither indicator yet signals overbought conditions (KDJ < 60; MACD below zero), leaving room for further upside.
Bollinger Bands
Bands have contracted significantly since May’s volatility spike, reflecting reduced volatility and compressed trading ranges. Price currently hugs the middle band (~$171), suggesting equilibrium. A close above the upper band ($177) would signal renewed bullish volatility, while a breakdown below the lower band ($165) could trigger accelerated selling. The narrowing bands imply an impending volatility expansion, with direction contingent on breakout confirmation.
Volume-Price Relationship
Volume surged during the May 1 capitulation (13.15M shares) and subsequent base formation near $165. Recent gains occurred on modest volume (2.52M shares on June 30), lacking strong conviction. However, accumulation patterns emerged during June’s $167–172 consolidation, with higher volume on up days (e.g., 3.08M shares on June 23). A breakout above $176 must coincide with volume exceeding the 50-day average (~2.8M) to validate sustainability.
Relative Strength Index (RSI)
The 14-day RSI has climbed from oversold lows near 30 in May to its current reading of 42, reflecting improving momentum. While still below the neutral 50 level, its upward trajectory supports the recent rebound. No overbought (>70) or oversold (<30) extremes are present, reducing reversal urgency but underscoring RSI’s role as a confirmation tool rather than a leading signal.
Fibonacci Retracement
Using the April 1 peak ($229.06) and May 31 trough ($165.15) as anchor points:
- The 23.6% retracement ($174.50) aligns precisely with the 50-day MA and recent highs, creating a major resistance confluence.
- The 38.2% level ($183.20) marks the next target if $174.50 is breached.
- The 61.8% retracement ($205) converges with the 100-day MA, representing a key recovery benchmark.
Conclusive Insights
Multiple indicators highlight confluence at $174–176 resistance, integrating the 50-day MA, 23.6% Fibonacci level, and recent price rejections. A volume-backed breakout above this zone would signal a high-probability trend reversal, potentially targeting $183 (38.2% Fib). Support at $167–168 remains critical, reinforced by the May-June base and Bollinger Band lows. No major divergences exist among oscillators, though tepid volume during the recent advance warrants caution. A close below $167 would invalidate the near-term bullish structure and expose the $165 swing low.