Brookfield Asset Jumps 4.53% To 59.32 On Bullish Breakout

Brookfield Asset (BAM) gained 4.53% to close at 59.32 on July 16, 2025, establishing a new local high and confirming a bullish breakout from recent consolidation. The subsequent technical analysis evaluates key indicators to assess the sustainability of this momentum.
Candlestick Theory
The price action shows a decisive bullish candle on July 16 with minimal upper wick, closing near the session high of 59.41, signaling strong buying pressure. This breakout follows a hammer formation on July 11 (low of 55.50), which established a key support level. Resistance is now observed at the yearly high of 60.19 (May 16), while secondary support aligns with the convergence of the May 6 low (52.39) and the 38.2% Fibonacci retracement level.
Moving Average Theory
The 50-day and 200-day moving averages are trending upward, with the current price (59.32) trading comfortably above both. This configuration signals a robust bullish trend, as shorter-term averages remain elevated above longer-term ones. The 50-day MA near 56.00 and the 200-day MA near 52.00 provide dynamic support zones, with no imminent bearish crossover detected across any timeframe.
MACD & KDJ Indicators
MACD shows a bullish crossover above the signal line, accompanied by expanding histogram bars, confirming accelerating upward momentum. KDJ readings are elevated, with the K-line near 98 in the latest session, indicating overbought conditions. While this suggests short-term exhaustion risk, the lack of bearish divergence implies the overall trend remains intact. Both oscillators currently align in signaling sustained upward pressure.
Bollinger Bands
Bollinger Bands expanded significantly on July 16, reflecting a volatility breakout. Price closed near the upper band (approximately 59.50), typically signaling continuation strength. The pronounced band expansion after a period of contraction indicates strong directional conviction, though the proximity to the upper band warrants monitoring for potential short-term consolidation.
Volume-Price Relationship
Volume surged 8% on July 16 to 1.92 million shares, validating the breakout candle. The volume profile shows consistent accumulation above the 55.50 support level, with notable volume spikes accompanying key upward moves (e.g., July 3 and July 10). This volume confirmation suggests institutional participation and strengthens the case for trend sustainability.
Relative Strength Index (RSI)
The 14-day RSI registered approximately 74 after the breakout, entering overbought territory (>70). While this historically warns of potential pullbacks, the absence of bearish divergence is notable – RSI made a higher high alongside price, unlike the divergence observed during the May peak at 60.19. This may indicate underlying strength, though traders should remain alert to overextension risks.
Fibonacci Retracement
Applying Fibonacci to the March 13 low (45.62) and May 16 high (60.19), key retracement levels emerge: 54.23 (23.6%), 52.90 (38.2%), and 52.00 (50%). Recent price action respected the 38.2% support during June-July consolidation, with the current breakout above the 78.6% level (58.52) opening a path toward the 127.2% extension near 62.00. The July 11 low (55.50) now forms a confluence support with the 23.6% retracement of the May-July rally.
Confluence is observed at 55.50–56.00, where multiple Fibonacci levels, volume support, and the 50-day MA converge, reinforcing a critical defensive zone for bulls. While RSI and KDJ overbought readings hint at near-term consolidation, the absence of bearish divergences across momentum indicators, coupled with volume-supported breakout characteristics, suggests bullish dominance may persist. Traders should monitor 60.19 resistance for potential profit-taking triggers.