Beigene Stock Surges 4.28% as Technical Indicators Signal Bullish Reversal Toward ¥265 Resistance

Candlestick Theory
Beigene's recent price action reveals significant candlestick patterns. The most recent 4.28% surge formed a robust bullish candle, closing near the session high after testing intraday support at ¥254.01. This follows a hammer pattern on June 18 (open/close near ¥252.78 after dipping to ¥252.67), indicating potential reversal momentum after prior declines. Key resistance is evident at ¥265 (tested unsuccessfully on June 16 and June 9), while support consolidates near ¥240–¥245, where multiple reversal candles formed in May and early June.
Moving Average Theory
The 50-day MA (currently near ¥248) recently acted as dynamic support during the June sell-off. Crucially, the price reclaimed this level in the latest session, suggesting regained short-term bullish momentum. The 100-day MA (¥235) and 200-day MA (¥230) remain ascending, reinforcing a long-term uptrend. The 100-day/200-day golden cross formed in early April remains intact, though the 50-day/200-day convergence indicates potential consolidation. A sustained hold above ¥248 may catalyze upward momentum toward the ¥265 resistance.
MACD & KDJ Indicators
MACD shows a bullish crossover emerging: the MACD line (12-day EMA minus 26-day EMA) is converging toward the signal line after June’s decline. Histogram bars are flattening near zero, suggesting weakening downward momentum. KDJ reflects improving conditions: the K-line (52) and D-line (48) are rising from oversold territory (<30 on June 20), though not yet overbought. While both oscillators lack decisive strength, their alignment hints at a potential reversal if bullish momentum persists.
Bollinger Bands
Bands contracted sharply in mid-June (Bandwidth near 8% vs. 15% in April), signaling reduced volatility and imminent breakout potential. The price rebounded from the lower band (¥243 on June 20) to challenge the middle band (20-day MA, ¥252). A close above ¥260 would pressure the upper band (currently ~¥268), confirming bullish breakout conditions. This volatility compression near key support underscores accumulation interest.
Volume-Price Relationship
Volume surged 84% during the June 12 rally (+5.38%), validating bullish conviction. Conversely, the June 17–20 decline saw below-average volume, suggesting limited capitulation. The latest 4.28% gain accompanied a moderate volume increase (424k shares vs. 230k prior), supporting but not overwhelmingly confirming the rebound. Sustained follow-through volume is needed to solidify the breakout.
Relative Strength Index (RSI)
The 14-day RSI rebounded from near-oversold (37 on June 20) to 58 after the latest rally. While not yet overbought, momentum is neutral-bullish. Divergence occurred in early June: RSI made higher lows while prices hit lower lows, foreshadowing the current rebound. RSI must hold above 50 to sustain recovery potential; failure may retest ¥245 support.
Fibonacci Retracement
Using the March 28 peak (¥274) and April 22 trough (¥229.22):
- The 38.2% retracement (¥248.25) aligned with June’s consolidation floor.
- The 61.8% level (¥258.50) capped the June 17 rally.
- The latest close (¥257.66) positions Beigene near the 50% level (¥251.61), which coincides with the 50-day MA. A decisive break above ¥258.50 could trigger a push toward the 78.6% retracement (¥265.80).
Confluence Points and Divergences
Strong confluence exists at ¥240–¥245, merging the 100-day/200-day MAs, the April swing low, and the 23.6% Fibonacci level. Bullish momentum requires holding above ¥248 (50-day MA/38.2% Fib). A notable divergence emerged with On-Balance Volume (OBV): it flatlined during June’s sell-off despite lower prices, signaling accumulation. However, MACD and RSI lacked decisive bearish momentum during the pullback, limiting downside follow-through.
Overall Outlook
Beigene’s technical structure suggests a recovery phase following a healthy correction. The reclaiming of the 50-day MA (¥248) on elevated volume, coupled with bullish reversals in RSI and KDJ, supports upside potential toward ¥265. Key risks include resistance at ¥258.50 (Fibonacci) and lack of explosive volume confirmation. Traders should monitor ¥248 as a breakdown level, which could trigger a retreat to the high-confluence ¥240–¥245 zone. The Bollinger Band compression and MACD convergence imply a directional resolution is probable near-term, with a slight edge to bullish continuation if ¥258.50 is surpassed.