Danaher Stock Surges 4.20% as Bullish Reversal Signals Emerge Near Key Support

Candlestick Theory
Danaher (DHR) exhibits significant candlestick patterns signaling potential trend shifts. The July 22nd session formed a bullish hammer (low: $185.50, close: $189.91) after a preceding downtrend, indicating rejection of lower prices. This was confirmed by the subsequent 4.20% white candle on July 23rd, closing near the session high ($197.89). Immediate resistance resides at $201.73 (July 23rd high), while robust support rests at $185.50 (July 22nd swing low). These levels align with recent price congestion zones.
Moving Average Theory
Short-term moving averages reflect bearish sentiment, with the 50-day MA (~$204) positioned below the 100-day MA (~$212) and 200-day MA (~$229) across the dataset. However, the current price ($197.89) has recently reclaimed the 50-day MA after a prolonged breach, hinting at potential short-term trend recovery. The persistent trading below longer-term averages underscores a broader bearish structure, though a sustained hold above the 50-day MA may signal improving near-term momentum.
MACD & KDJ Indicators
The MACD histogram shows nascent positive momentum, with the signal line narrowing toward a potential bullish crossover after a period of bearish divergence. Concurrently, the KDJ oscillator’s %K line (32) has crossed above %D (28) from oversold territory, suggesting budding upward momentum. However, both indicators remain below neutral midpoints, warranting caution. Divergence is noted: While KDJ signals short-term bullishness, MACD’s convergence lacks conviction, creating a mixed momentum outlook.
Bollinger Bands
Volatility contraction is evident with bands narrowing between $194-$201 leading into July 23rd. The price breakout above the upper band ($201.73) on high volume signals a potential volatility expansion phase. Historically, such breakouts preceded short-term rallies, though closes above the upper band may indicate overextension. The band width near multi-week lows reinforces the significance of the recent breakout if sustained.
Volume-Price Relationship
The July 23rd rally occurred on elevated volume (6.36M shares vs. 30-day avg. ~3.5M), validating buyer conviction. This follows a volume spike on July 22nd (7.05M shares) during the reversal off $185.50, confirming capitulation. However, declining volume during prior downtrends (e.g., July 18th: 4.24M shares) lacked conviction, suggesting weakness in bearish momentum. Sustained upside requires ongoing volume support.
Relative Strength Index (RSI)
The 14-day RSI (calculated as 58.6 using gain/loss averages) has rebounded from near-oversold levels but remains below the overbought threshold. This indicates room for further upside before technical exhaustion. The RSI’s ascent aligns with the recent price rebound but diverged bearishly during the June-July decline (lower highs while prices formed lower lows), which now resolves with the recovery. It remains a warning indicator, not yet signaling overbought risks.
Fibonacci Retracement
Using the April 2025 peak ($258.23) and the recent June 2025 low ($171.00), key retracement levels emerge: The 38.2% level ($215) aligns with the late-June resistance cluster. The current price ($197.89) sits below the 23.6% level ($203), making $203-$215 a critical resistance zone. The recent rally from $185.50 may target the 23.6% resistance ($203), with $215 representing a major technical hurdle for any sustained recovery.
Confluence & Divergence Synthesis
Confluence supports a near-term bullish bias: The hammer reversal at $185.50, volume-backed breakout above the 50-day MA, and Bollinger Band expansion align with improving RSI and KDJ momentum. However, material divergence exists between short-term indicators (KDJ bullish) and longer-term trends (bearish MA alignment). The $201.73-$203 resistance zone is critical; a decisive break above could accelerate gains toward $215 (Fibonacci and volume resistance), while failure may retest $185 support. Probabilistically, recent momentum favors upside continuation near-term, though the broader downtrend necessitates caution above $203 resistance.