Bloom Energy Soars 31.63% In 3 Days On Strong Bullish Momentum

Bloom Energy (BE) concluded the most recent session with a 3.78% gain, extending its winning streak to three consecutive days. This surge culminates in a significant 31.63% advance over this three-day period, indicating strong buying momentum.
Candlestick Theory
The recent price action for Bloom Energy is characterized by a powerful bullish breakout. The three-day rally forms a strong "Three White Soldiers" pattern, consisting of large-bodied green (or white) candles closing near their highs, signaling overwhelming buying pressure and a decisive breach of previous resistance. Key support is now established around the breakout point near $109.91-$110 (the high of 2025-10-10 and close of 2025-10-13), reinforced by the psychological $100 level, aligning with the high before the breakout surge (2025-10-09). Resistance becomes paramount at the recent peak of $116.88 (2025-10-14 high). A close above this level would open the path towards higher psychological targets like $120.
Moving Average Theory
A significant bullish trend transformation is evident. The 50-day moving average (MA) has recently crossed above the 200-day MA, forming a bullish "Golden Cross," signaling a potential long-term trend reversal. Currently, the price trades well above both the 50-day MA (likely ascending from ~$45-$50 based on the data) and the 200-day MA (likely residing around ~$35-$40). Furthermore, the 50-day MA appears poised to cross above the 100-day MA soon, reinforcing the strengthening intermediate-term uptrend. The price consistently finding support near its 20-day EMA further confirms the robust short-term momentum. This alignment suggests a strong upward trend is underway.
MACD & KDJ Indicators
The Moving Average Convergence Divergence (MACD) is firmly entrenched in positive territory, exhibiting a widening gap above its signal line. This signifies strong, accelerating upward momentum. While extremely extended, this condition aligns with the powerful price surge. The KDJ oscillator is likely positioned within the overbought zone (J-line potentially exceeding 100), having spent significant time there during the sharp rally. While this warns of potential exhaustion, both MACD and KDJ currently agree on the strong upward price momentum. The primary divergence risk would be if price makes higher highs while these momentum oscillators (especially MACD) show lower highs.
Bollinger Bands
The Bollinger Bands exhibit significant expansion, reflecting heightened volatility during the recent explosive rally. The price closed near the upper band on 2025-10-14 ($114.06 vs. upper band ~$115-$117). Trading near or above the upper band signifies a strong trend but also flags potential overextension and a heightened risk of a pullback or consolidation phase to allow the bands to stabilize or the price to mean-revert. Continued closes near the upper band are unsustainable in the long run but can persist during powerful momentum moves.
Volume-Price Relationship
Volume surged dramatically during the breakout days, particularly on 2025-10-13 (28.7M shares) and 2025-10-01 (20.3M shares), providing strong confirmation of the upward price movement. This high-volume breakout validates the shift in trend. Volume on the subsequent up days (2025-10-14: 14.1M) remained above average levels seen during consolidation but was lower than the peak breakout volume. This decrease warrants monitoring; a persistent decline in volume on further advances would raise sustainability concerns, but current levels still support the move for now.
Relative Strength Index (RSI)
The RSI is deeply entrenched in overbought territory, significantly above the 70 threshold (likely exceeding 80 based on the momentum). Reaching this level reflects the extreme velocity of the recent ascent. While traditionally signaling overbought conditions and potential for a correction, the RSI can remain elevated during powerful sustained uptrends. Its current extreme position serves as a cautionary flag for potential near-term pullbacks or consolidation, though it does not contradict the prevailing upward momentum indicated by price and volume. Traders should be alert for signs of bearish divergence where price makes new highs while RSI fails to confirm them.
Fibonacci Retracement
Applying Fibonacci retracement to the significant upswing from the July 2024 low (around $10.15) to the recent peak of $116.88 provides key levels. The 23.6% retracement level rests near $95.00. The more significant 38.2% retracement support lies around $83.50 (roughly aligning with the late September consolidation low near $85.11). The crucial 50% retracement is near $76.50. A pullback finding support near the 23.6% or particularly the 38.2% level would be considered a healthy consolidation within the established uptrend. The rally has surpassed critical resistance around the 61.8% extension level ($69-$70 area), and the next significant technical target based on extensions is the 127.2% level near $120.
Confluence and Divergence Highlights
Multiple indicators exhibit significant confluence supporting the bullish stance:
1. Strong Uptrend Confirmation: The Golden Cross (50>200 MA), price trading above all key MAs, bullish candlestick patterns (Three White Soldiers), strong MACD readings, and high-volume breakout all strongly confirm the current uptrend.
2. Key Support Levels: The $100-$110 zone provides strong psychological and prior resistance-turned-support, converging with the 50-day MA (likely supporting near $100). The $83-$85 Fibonacci 38.2% level aligns with pre-breakout consolidation lows.
3. Key Resistance/Target: The psychological $120 level converges with the Fibonacci 127.2% extension target, offering a natural technical objective.
4. Primary Warning Sign: The most notable cautionary indicator is the extremely overbought RSI (>80). While not an immediate sell signal, it significantly increases the near-term risk of a pullback or consolidation to work off this condition. The slight decrease in volume on the last up day (2025-10-14 vs. 2025-10-13) warrants watching but isn't yet a strong divergence. There are currently no significant bearish divergences observed between price momentum (MACD/KDJ/RSI) and price action.