McCormick Stock Surges 5.34% on Bullish Technicals and Heavy Volume

McCormick (MKC) shares rallied 5.34% in the latest session, closing at $77.57 on significantly elevated volume of 4.16 million shares. This strong positive momentum forms the context for the technical assessment.
Candlestick Theory
The current daily chart shows a robust bullish engulfing pattern formed over June 25th and 26th, where the large white candle fully consumed the prior session's decline. This follows consolidation near the $73-$75 zone, suggesting accumulation. The $78.16 high from June 26th represents immediate resistance, with strong support evident at $75.94 (the session low) and more significant support at $73.35 (June 25th low).
Moving Average Theory
The 50-day moving average (MA) maintains an upward slope around $75.30, reflecting improving intermediate-term momentum. However, price remains below the declining 100-day MA ($78.80) and 200-day MA ($79.10). The persistence of the latter two in downtrends confirms the primary bearish structure, though the proximity to these levels creates a critical test area near $78-$79. The 50-day crossing above the 100-day in early Q2 2025 provided initial support for the recent recovery.
MACD & KDJ Indicators
The MACD histogram shows strengthening momentum, crossing above its signal line recently. The KDJ oscillator presents a bullish configuration, with the %K line (87.2) above the %D line (78.4) and both trending upwards, though the high %K suggests potential short-term overheating. This aligns with a continuation signal but warrants caution near term.
Bollinger Bands
Price surged to the upper Bollinger Band ($78.10) on June 26th, indicating a volatility expansion move. Band width had contracted noticeably in the preceding sessions, signaling the energy for such a breakout. This breakout above the upper band typically suggests strong upward momentum, though reversion towards the middle band ($75.60) is possible as volatility normalizes.
Volume-Price Relationship
The surge to $77.57 was confirmed by volume significantly exceeding the 20-day average – a strong validation signal. Volume expanded markedly during the upswing compared to prior down days, suggesting genuine accumulation. The lack of similar volume on key resistance tests earlier in May and April highlights improved conviction behind the current move.
Relative Strength Index (RSI)
The 14-day RSI reading currently sits at 63.8 after the strong up day. This places it in neutral territory, having moved up sharply from near-oversold levels below 40 just days prior. While momentum is clearly positive, the RSI lacks an overbought reading (>70), suggesting potential room for further upside before warning signals might emerge.
Fibonacci Retracement
Using the significant downtrend from the April 3rd peak of $82.90 to the June 26th swing low of $73.35 reveals key levels. The 50% retracement sits at $78.12, aligning precisely with the June 26th intraday high. The 61.8% retracement level at $79.01 poses the next critical overhead resistance. This confluence of price and Fibonacci resistance creates a significant technical hurdle.
Confluence & Divergence
Significant confluence exists between the Fibonacci 50% retracement ($78.12), the upper Bollinger Band ($78.10), and the June 26th high ($78.16). Breaking this zone requires substantial volume confirmation to neutralize resistance. A divergence exists between the improving short-term MAs (50-day slope) and the still-declining longer-term MAs (100-day and 200-day), reflecting the battle between recovering intermediate momentum and persistent longer-term downward pressure. The RSI's position relative to the April highs also shows lower highs, suggesting slightly less momentum strength during this recovery compared to prior rallies within the broader downtrend.
Overall, McCormick shows powerful short-term bullish momentum confirmed by volume, but faces critical resistance near $78-$79, combining Fibonacci, moving average, and recent price structure barriers. A sustained break above this zone with continued high volume could signal a more significant trend reversal. Failure here may see consolidation or a pullback towards support near $75.50-$76.00.