GE Vernova Stock Surges 4.3% As Bullish Technicals Signal Upside To 644 Resistance

Candlestick Theory
GE Vernova's recent price action reveals notable patterns. The stock formed a bullish engulfing pattern on October 6th (low: 593.7, close: 603.22) and October 8th (low: 599, close: 625.45), signaling a reversal from the October 3rd bearish candle (high: 611.75, close: 594.99). Key resistance is evident at the September high of $644.37, while support emerges near $588–$592, validated by October 3rd and 7th lows. This zone aligns with the 38.2% Fibonacci retracement, reinforcing its technical significance.
Moving Average Theory
The 50-day moving average (~$600) provides dynamic support, recently tested during the early October pullback. The 100-day MA ($570–580) and 200-day MA ($520–530) maintain upward slopes, confirming the long-term uptrend. The current price ($625.45) holding above all three averages indicates bullish alignment. However, the 50-day MA’s flat trajectory since late September suggests consolidation pressure near term.
MACD & KDJ Indicators
MACD shows a bullish crossover emerging in early October as the signal line converges with the histogram. KDJ exited oversold territory (KDJ < 20) in early October, with the %K line crossing above %D, supporting upside momentum. Both oscillators lack clear divergence from price, though MACD remains below its centerline, indicating trend strength requires further confirmation. The recovery signals align with the rebound from the $588 support.
Bollinger Bands
Bollinger Bands contracted sharply in late September, reflecting reduced volatility before the early October drop to $588 (near the lower band). The subsequent expansion and price surge toward the upper band ($626) signal renewed bullish momentum. Current proximity to the upper band (~$630) suggests minor resistance, but band expansion supports upside continuation if volume persists.
Volume-Price Relationship
Volume trends validate key price moves. The July breakout above $600 occurred on record volume (>7M shares), establishing conviction. The October rebound from $588 saw rising volume (Oct 6–8 avg: ~2.1M shares vs Sept avg: ~2.6M), supporting the rally’s sustainability. However, volume remains below July and September peaks, warranting caution at resistance zones. Divergence between higher prices and lower volume in late September preceded the pullback.
Relative Strength Index (RSI)
RSI (14-period) rebounded from near-oversold (36.6) to neutral (59.4) during the October rally, reflecting recovering momentum without overbought pressure. The indicator avoids extremes (>70/<30), suggesting balanced buying pressure. Historically, RSI peaks above 70 in September coincided with reversals, making it prudent to monitor for overbought signals near the $644 resistance. RSI divergence preceded September’s correction.
Fibonacci Retracement
Applying Fib levels between the March low ($258) and September peak ($644), the 38.2% retracement ($509) underpinned the August consolidation, while the 23.6% level ($588) supported the October rebound—validated twice in early October. The 50% retracement ($451) aligns with the July breakout zone. Confluence between the 23.6% Fib, horizontal support ($588–592), and the 50-day MA reinforces this as critical downside defense. Upside targets include the 138.2% extension ($730) longer term.
Confluence and Divergence Observations
Bullish confluence exists between the RSI rebound, KDJ/MACD crossovers, and the Fibonacci/MA support at $588. Volume confirms the October recovery but lacks the conviction of prior breakouts, creating a minor divergence with price. Bearish divergence emerged in late September as RSI and MACD weakened while price tested $644. Overall, the technical structure favors upside continuation toward $644 resistance, though sustainable volume and RSI behavior near this level remain critical watchpoints.