GE HealthCare Jumps 3.14% As Bullish Engulfing Pattern Signals Upside Momentum

Candlestick Theory
GE HealthCare's recent price action reveals a notable bullish engulfing pattern forming on July 22, 2025, as a 3.14% advance to $76.49 fully consumed the prior session’s bearish body. This reversal signal near the $74.11–$74.16 support zone (tested July 21 and July 18) suggests buyers are defending this level. Key resistance emerges at $76.78–$77.32, aligning with the June 10 and July 10 swing highs. A sustained break above $77.32 would confirm bullish momentum, while failure to hold $74 risks a retest of the $71.98–$72.75 consolidation zone from late June.
Moving Average Theory
The 50-day moving average (trending near $75.50) recently crossed above the 100-day MA (~$74.80), reinforcing a bullish medium-term bias. The 200-day MA at $78.70 underscores a primary uptrend, though current prices remain below this level. A "golden cross" formed in early July as the 50-day surpassed the 200-day, historically preceding advances. Near-term support clusters around the 50-day MA, while the 200-day MA caps upside potential. A decisive close above the 200-day MA would signal trend acceleration.
MACD & KDJ Indicators
MACD lines show a bullish crossover emerging above the zero line, with the July 22 histogram expanding positively. This aligns with improving momentum. KDJ readings (K: 65, D: 58, J: 79) approach overbought territory but maintain upward trajectories without bearish divergence. The KDJ’s bullish crossover in mid-July preceded the recent rally. While not yet overbought (KDJ < 80), sensitivity to profit-taking increases if J-curve surpasses 85. MACD’s alignment with price strength reduces reversal risks near-term.
Bollinger Bands
Bollinger Bands expanded sharply on July 22 as price tested the upper band ($76.80), indicating volatility breakout after the late-June to mid-July contraction phase. This breakout above the 20-day average (~$75.20) supports bullish continuation. The previous band squeeze in early July resolved upward, validating the current expansion. Sustained trading above the midline ($75.20) may target the upper band near $77.50. Conversely, a retreat below $75.20 would suggest false breakout risks.
Volume-Price Relationship
The July 22 rally occurred on 4.64M shares – the highest volume in three weeks – confirming buyer conviction. This volume surge contrasts with the lower volume (3.38M–3.90M) during the preceding pullback, suggesting weak selling pressure. A volume decline during the July 11–21 consolidation preceded the breakout, typical of accumulation phases. Persistent trade above 4M shares would validate trend sustainability, while fading volume above $77 may signal exhaustion.
Relative Strength Index (RSI)
Daily RSI (14-period) reads 62, reflecting strengthening momentum without overbought conditions (>70). The indicator rebounded from near-oversold levels (42 in late June) alongside price, showing no bearish divergence. However, proximity to the 70 threshold warrants vigilance; RSI values above 70 in early April preceded a 16% correction. Current momentum appears healthy but may face pressure near 70 RSI if the ascent accelerates without consolidation.
Fibonacci Retracement
Applying Fibonacci retracement to the April 3 peak ($79.88) and June 24 trough ($69.49) reveals key levels. The 38.2% retracement ($73.70) held as support in early July, while the 61.8% level ($76.10) aligns with July’s resistance zone. A breakout above $76.10 would expose the 78.6% retracement ($77.60) and the April high. Confluence exists at $76.10–$76.80, combining Fibonacci resistance, the July 10 high, and the Bollinger upper band. Downside, the 23.6% level ($71.80) marks critical support if $74 fails.
Confluence and Divergence Observations
Strong confluence exists at $74.00–$74.50, where candlestick support, the 100-day MA, and the 20-day Bollinger Band midline converge. This zone’s defense on July 21–22 underpins the bullish structure. Divergence is currently absent; MACD, KDJ, and RSI align with price direction. However, overbought signals may emerge if RSI surpasses 70 alongside KDJ > 80 during a test of $77.60 Fibonacci resistance. Volume confirmation at key breaks remains critical for trend validation. Probabilistically, the confluence of moving average crossovers, volume-backed breakouts, and lack of divergence suggests upside momentum may persist toward $77.32–$77.60, though consolidation near $75–$76 would ease overextension risks.