Globalfoundries Gains 3.19% As Technicals Signal Bullish Continuation

Globalfoundries (GFS) rose 3.19% to $39.42 in the most recent session, closing near the daily high of $40.49 after testing support at $38.19. This price action occurs within a broader context of technical signals, which we analyze using multiple frameworks below.
Candlestick Theory
The latest session formed a robust bullish candle with a long lower wick, indicating strong rejection of prices below $38.50. This follows a hammer pattern on June 30 (low: $38.01, close: $38.20), suggesting consolidation above the $38.00 support. Immediate resistance is evident at $40.50, aligned with the June 11 swing high. A sustained break above $40.50 could activate bullish targeting toward $42.50, while failure to hold $38.00 would invalidate the recovery thesis.
Moving Average Theory
The 50-day SMA (approximately $38.20) recently crossed above the 100-day SMA ($37.80), confirming intermediate-term bullish momentum. Price currently trades above both averages but below the declining 200-day SMA ($42.40). This configuration suggests emerging positive bias in the medium term, though the long-term trend remains neutral-to-bearish until the 200-day SMA flattens or is breached. Confluence support exists near $38.00–38.30, where the 50-day and 100-day SMAs converge.
MACD & KDJ Indicators
The MACD histogram has turned positive, with the signal line crossing above zero, reflecting accelerating upside momentum. Meanwhile, the KDJ oscillator shows the %K line at 75 and %D at 68, approaching overbought territory but not yet extreme (readings >80 would warrant caution). This alignment supports near-term bullish continuity, though divergence would develop if prices stall while KDJ retreats prematurely.
Bollinger Bands
Bollinger Bands have expanded significantly during the recent rally, indicating a volatility breakout. Price closed near the upper band ($40.20), typically a sign of strength. The 20-day moving average (mid-band: $38.70) now acts as dynamic support. Continued trading in the upper band half would reinforce bullish control, while a contraction from current levels may precede consolidation.
Volume-Price Relationship
The breakout was validated by a substantial 92% volume increase versus the prior session, suggesting strong institutional participation. This follows a multi-session accumulation pattern where advances (e.g., June 24: +2.73%) occurred on above-average volume, while pullbacks saw reduced activity. Such volume confirmation enhances confidence in the sustainability of the current upswing.
Relative Strength Index (RSI)
The 14-day RSI reads 62, approaching but not yet exceeding the overbought threshold of 70. Historically, GFS has sustained RSI levels between 60-75 during uptrends without immediate reversal. This indicates room for further upside, though traders might monitor for bearish divergence if new highs occur without corresponding RSI confirmation.
Fibonacci Retracement
Using the swing low from May 2 ($35.89) and the May 12 high ($40.11), key retracement levels are defined. The 61.8% Fib level ($38.30) aligned with the recent consolidation floor, while the 38.2% level ($39.50) caps the immediate upside. A decisive close above $39.50 would open a path toward the 23.6% level ($40.50), a confluence point with horizontal resistance.
Confluence and Divergence Observations
Bullish confluence appears at $38.00–38.30, combining Fibonacci, SMA, and volume-based support. The breakout above $39.00 gains credence from MACD momentum and volume confirmation. A minor divergence exists between RSI (not yet overbought) and KDJ (approaching overbought), suggesting near-term consolidation risk, but no reversal signal is yet present. Overall, technical structure favors further upside toward $40.50, contingent on holding the $38.00 support during retracements.