Ingersoll Rand Jumps 4.83% Amid Bullish Reversal Signals After Steep Drop

Ingersoll Rand (IR) advanced 4.83% in the most recent session (2025-08-04), closing at 78.6 after trading between 75.38 and 79.03, suggesting a bullish reversal attempt following the prior session’s steep decline.
Candlestick Theory
The recent price action reveals significant volatility, with the 2025-08-01 session forming a long bearish candle (high: 79.35, low: 73.87) on elevated volume (12.2M shares), signaling strong selling pressure. This was countered by the 2025-08-04 bullish candle closing near its high, potentially indicating a reversal. Key resistance is established at the 2025-08-01 high of 79.35, while the low of 73.87 serves as critical short-term support. A breach above resistance would reinforce bullish momentum, whereas failure could retest support.
Moving Average Theory
The 50-day, 100-day, and 200-day moving averages remain in a bearish alignment, with the current price (78.6) trading below all three. Given the sustained trading below these averages since the sharp drop on 2025-08-01, the long-term trend leans bearish. The convergence of these MAs in the mid-80s reinforces resistance overhead, suggesting any rally may face headwinds near these levels.
MACD & KDJ Indicators
The MACD likely resides in negative territory, though the recent rebound could prompt a bullish crossover if momentum persists. The KDJ oscillator reflects improving short-term conditions, with %K rebounding from an oversold 7.6 (2025-08-01) to approximately 32.4 (2025-08-04), indicating reduced downward pressure. This divergence from price lows suggests nascent bullish momentum, though confirmation requires sustained improvement.
Bollinger Bands
Heightened volatility is evident via Bollinger Band expansion during the 2025-08-01 sell-off. The subsequent rebound from the lower band (near 75.38) aligns with typical mean-reversion behavior, targeting the middle band (~80-82). Band contraction would signal reduced volatility and potential consolidation, whereas sustained upper-band proximity would strengthen the reversal thesis.
Volume-Price Relationship
Volume analysis reveals conviction behind the bearish move (12.2M shares on 2025-08-01) but muted confirmation for the rebound (6.8M on 2025-08-04). This volume disparity questions the rally’s sustainability. However, the rebound volume exceeds the 30-day average, warranting monitoring for follow-through buying to validate reversal prospects.
Relative Strength Index (RSI)
The 14-day RSI approximates 31.8, hovering near oversold territory but not breaching the critical 30 threshold. This aligns with the KDJ’s rebound, reflecting easing bearish momentum. An RSI climb above 50 would signal strengthening recovery potential, though it currently remains in neutral-bearish territory.
Fibonacci Retracement
Applying Fibonacci to the decline from 90.44 (2025-07-10 high) to 73.87 (2025-08-01 low), key retracement levels are identified: 23.6% (77.78), 38.2% (80.20), and 50% (82.16). The close at 78.6 exceeds the 23.6% level, supporting short-term bullish momentum. The 38.2% level (80.20) now serves as immediate resistance; surpassing this may open a path toward 82.16.