Danaher Jumps 3.87% On Bullish Technical Signals Amid Key Resistance Test

Danaher (DHR) advanced 3.87% in the most recent session, closing at $211.80 on above-average volume. This follows a volatile period characterized by significant price swings and technical inflection points, as analyzed through multiple frameworks below.
Candlestick Theory
Recent price action shows a bullish engulfing pattern formed by the August 21st bearish candle (close: $203.90) and subsequent 3.87% surge to $211.80 on August 22nd. This signals potential reversal momentum near the critical $200 psychological support. Resistance is evident at $215-217 (July 2025 highs), while support crystallizes at $200 (July swing low) and $195 (May 2024 trough). The rejection of prices below $200 on August 21st – despite intense selling pressure – highlights this level's technical significance.
Moving Average Theory
The 50-day EMA at $205.40 now serves as dynamic support after the price reclaimed this level decisively. However, death crosses persist with the 50-day EMA below the 100-day ($212.80) and 200-day EMA ($225.10). This configuration reflects residual intermediate-term bearish pressure despite recent upside. A sustained breakout above the 100-day EMA would be necessary to signal trend reversal potential.
MACD & KDJ Indicators
MACD shows a bullish crossover emerging below the zero line, with the histogram turning positive for the first time since April. This divergence relative to price's lower lows suggests weakening downward momentum. The KDJ oscillator exited oversold territory (K: 28 → 42, D: 24 → 35) with a bullish crossover, though J-curve at 58 remains below overbought thresholds. These developments warrant monitoring for confirmation of a momentum shift.
Bollinger Bands
Volatility expansion is evident as the 20-day band width increased 15% during the August sell-off. Price recently rebounded from the lower Bollinger Band ($203) toward the midline ($209.50), with the upper band at $216.80 representing immediate resistance. The absence of a squeeze pattern suggests continued volatility near-term.
Volume-Price Relationship
The recovery rally occurred on 3.36M shares – 25% above the 30-day average – validating bullish conviction. This contrasts with the August 21st sell-off, which saw lower volume than the preceding rally, suggesting lack of conviction in downside continuation. Notably, distribution patterns marked the March-April 2025 decline (peaks >5M shares), while recent accumulation near $200 supports basing potential.
Relative Strength Index (RSI)
The 14-day RSI has risen from oversold (29.5 on August 21) to neutral (43.8), though remains below the bullish 50 threshold. This recovery lacks divergence from price, indicating the indicator is confirming rather than leading the bounce. The RSI's failure to reach overbought (>70) during July rallies underscores persistent weakness within the broader downtrend.
Fibonacci Retracement
Using the swing high of $278.02 (September 30, 2024) and swing low of $174.64 (April 8, 2025), key levels are:
- 23.6%: $199.04
- 38.2%: $214.13
- 50%: $226.33
The August 22nd close at $211.80 positions DHR precisely at the 38.2% retracement – a typical reversal zone. This confluence with the July 2025 resistance area ($212-$215) creates a critical technical battleground.
Confluence & Divergences
Convergence appears at $214-$215, where Fibonacci resistance, the 100-day EMA, and the July price ceiling align – requiring significant volume to overcome. Bullish divergences exist between MACD/price and RSI/price during the July-August decline, suggesting waning bearish momentum. However, the moving average stack remains bearishly aligned, and RSI has not yet confirmed a new uptrend. A confirmed break above $215 could trigger short-covering toward $226.33 (50% retracement), while failure may retest $200 support.