Becton Dickinson Jumps 8.86% on Bullish Technical Reversal

Becton, Dickinson (BDX) Technical Analysis
Becton, Dickinson surged 8.86% to $187.68 in the latest session, marking a significant bullish reversal from recent lows. This analysis synthesizes multiple technical perspectives to assess the stock’s trajectory.
Candlestick Theory
The most recent session formed a robust bullish candle, closing near the high of $190.12 after testing support at $184.21. This follows a hammer pattern on 2025-08-06 (low: $172.20, close: $172.41), suggesting a potential bottom near $172–$175. Key resistance is established at $190–$192 (recent swing highs), while $172–$175 now acts as critical support. A break above $192 could signal continuation.
Moving Average Theory
The 50-day MA (approx. $176) crossed below the 100-day MA (approx. $185) and 200-day MA (approx. $205) in Q2 2025, confirming a long-term downtrend. However, the price has now reclaimed the 50-day MA, indicating short-term bullish momentum. A sustained hold above the 50-day MA may signal trend stabilization, though the 100-day and 200-day MAs remain overhead resistances.
MACD & KDJ Indicators
MACD shows a nascent bullish crossover, with the histogram turning positive after a period of convergence. KDJ exited oversold territory (K: <20 in late July) and now registers a bullish crossover (K > D), supporting upward momentum. However, KDJ’s J-line nears overbought (≈75), hinting at near-term exhaustion risk.
Bollinger Bands
Bands contracted sharply in July (volatility squeeze) before the recent expansion, with price breaking above the upper band ($185) on 2025-08-07. This signals high volatility and potential continuation. The midline ($178) now acts as support. A close back inside the bands would suggest consolidation.
Volume-Price Relationship
The 8.86% rally occurred on 4.84M shares—the highest volume since 2025-07-15—validating bullish conviction. Prior downtrends (e.g., 2025-05-01: -18.13%) saw volume spikes, confirming distribution. Sustained volume above the 30-day average (≈3M) is critical for trend durability.
Relative Strength Index (RSI)
RSI (14-day) rebounded from oversold (30.5 in late July) to 62.4, reflecting improving momentum but not yet overbought. The recovery aligns with price action, though RSI remains below its April high (70+), signaling residual bearish pressure. A break above 70 would strengthen the bull case.
Fibonacci Retracement
Drawing from the 2025-02-05 high ($245.06) to the 2025-06-27 low ($169.79), key levels emerge: 23.6% ($186.77) and 38.2% ($195.94). The close at $187.68 breaches the 23.6% retracement, suggesting bullish momentum. The 38.2% level ($195.94) aligns with the 100-day MA and gap-down resistance (May 2025), making it a critical target.
Confluence and Divergences
- Confluence: Bullish alignment is evident: (a) Price reclaiming 50-day MA, (b) MACD/KDJ crossovers, (c) volume-backed breakout, and (d) Fibonacci breach at $186.77.
- Divergence: RSI’s lower high (vs. April’s peak) contrasts with the price recovery, reflecting weaker momentum than during prior rallies. The 200-day MA remains a structural resistance absent volume confirmation.
Conclusion
Becton, Dickinson exhibits strong short-term bullish momentum, validated by candlestick reversal, volume, and multi-indicator confluence. However, overhead resistances—notably the 38.2% Fibonacci ($195.94) and 200-day MA (~$205)—and RSI divergence warrant caution. A close above $192 may target $196, while failure to hold $175 could reactivate the downtrend. Probabilistically, the evidence favors a tactical uptrend, though sustainability hinges on volume and broader market conditions.