Crown Castle Nears Key Resistance At 110.7 After 3.5% July Rally As Indicators Flash Overbought

Candlestick Theory
Crown Castle’s recent price action reveals a bullish breakout pattern. On July 22, 2025, a long white candle emerged (open: $106.47, close: $110.25), engulfing the prior three sessions and signaling strong upward momentum. This breakout cleared the $107–$108 resistance zone established in early July. The July 23 session closed at $109.73 (-0.47%) as a small bearish candle with a high of $110.7, suggesting consolidation near the new resistance at $110.7–$111. Immediate support resides at $106.5 (July 22 low), with secondary support at $104–$105 (mid-July congestion zone). This pattern indicates buyer exhaustion after a sharp rally, potentially necessitating a short-term pullback to gather momentum.
Moving Average Theory
Crown Castle’s moving averages confirm a robust uptrend. The 50-day SMA (currently near $104) sustained upward trajectory since early June, reflecting accelerating medium-term momentum. Both the 100-day SMA ($99–$100) and 200-day SMA ($97–$98) slope positively, with the price trading decisively above all three averages—a hallmark of a long-term bull market. A bullish Golden Cross materialized in June as the 50-day SMA surpassed the 200-day SMA. The current price premium of ~5% above the 50-day SMA suggests overextension, increasing vulnerability to a mean-reversion pullback toward $106.
MACD & KDJ Indicators
The MACD histogram has shown fading bullish momentum since mid-July, with the MACD line (12,26,9) plateauing near 1.5 despite higher prices—a potential negative divergence. Concurrently, the KDJ oscillator (9,3,3) entered overbought territory (>80) on July 22, with the %K line peaking at 88 before curling down to 78 on July 23. This signals waning short-term buying pressure. While MACD remains above its signal line, the convergence of overbought KDJ and slowing MACD momentum indicates elevated risk of a near-term corrective phase.
Bollinger Bands
Bollinger Bands (20-day, 2σ) highlight rising volatility. The bands expanded sharply during the July 22 breakout, with price testing the upper band ($110.5). July 23 maintained proximity to the upper band, indicating persistent bullish bias. The 20-day SMA ($105.6) acts as dynamic support. However, the sharp band expansion historically preceded short-term consolidations (e.g., late June contraction after a rally). A reversion toward the mid-band ($105–$106) would align with typical volatility cycles after such expansions.
Volume-Price Relationship
Volume patterns validate bullish momentum but expose near-term caution. The July 22 rally occurred on 3.73M shares (+45% vs. 30-day average), confirming breakout conviction. However, the July 23 decline saw volume surge to 4.71M shares—the highest in two months—suggesting distribution at resistance. This high-volume pullback, coupled with a close near session lows ($109.73), implies sellers are gaining influence. Absent a volume-supported recovery above $110, sustainability of the breakout appears questionable.
Relative Strength Index (RSI)
The 14-day RSI hit 71 on July 22, crossing into overbought territory (>70) for the first time since February 2025. It moderated slightly to 69 on July 23. While RSI >70 typically signals overbought risk, it can persist in strong trends. Notably, this RSI peak coincides with MACD/KDJ convergence and volume divergence, amplifying the warning. A decisive break below 60 would likely signal corrective momentum. Historical context is critical: Prior RSI peaks near 70 (e.g., April 2025) preceded 5–8% pullbacks.
Fibonacci Retracement
Applying Fibonacci to the April-July swing (low: $94.83 on April 8, high: $110.7 on July 23), the 61.8% retracement at $106.1 aligns with the July 22 breakout point and 50-day SMA. This level now serves as critical support. The 78.6% level at $112.8 presents the next major resistance. Current price action stalled near the 76.4% extension level ($110.9), reinforcing psychological resistance at $110–$111. A pullback to $106–$107 (50%–61.8% zone) could offer a higher low entry opportunity within the broader uptrend.
Concluding Synthesis
Multiple indicators converge at the $110–$111 resistance: bearish volume divergence, overbought RSI/KDJ readings, Fibonacci extension resistance, and Bollinger Band containment. This suggests near-term exhaustion. However, the bullish moving average alignment, MACD’s positive territory, and the Fibonacci support zone at $106–$107 provide structural confidence. A healthy pullback toward $106 may emerge to reset oscillators and solidify support. Divergences between volume (bearish) and trend indicators (bullish SMAs) imply consolidation rather than reversal. Traders should monitor $106 support for trend continuity—a hold there may catalyze a secondary breakout toward $112.