Teva Pharmaceutical Rises 3.01% as Technicals Signal Bullish Momentum

Teva Pharmaceutical (TEVA) Technical Analysis
Teva Pharmaceutical (TEVA) gained 3.01% in the latest session, closing at $17.77, signaling renewed bullish momentum. A comprehensive technical assessment follows.
Candlestick Theory
Key candlestick patterns reveal critical price dynamics. The most recent session formed a robust bullish candle closing near its high ($17.77 vs. high of $17.825), confirming rejection of the prior session’s low ($17.065). This pattern suggests a short-term reversal, reinforcing the $17.00–$17.30 zone as immediate support. Resistance is evident near $18.00–$18.30, aligning with May’s swing high. A hammer candle formed on 2025-05-30 at $16.78 (after a 4.28% decline) highlighted strong buying interest near $16.70, now a major support.
Moving Average Theory
The 50-day, 100-day, and 200-day moving averages signal a strengthening uptrend. The current price ($17.77) trades above all three MAs, with the 50-day MA crossing above the 100-day MA in late May, triggering a bullish "golden cross." The 200-day MA ($16.80) provides a foundation for the longer-term trend. This alignment suggests sustained upward momentum, though a pullback to test the 50-day MA ($16.90) could offer consolidation before further gains.
MACD & KDJ Indicators
MACD (12,26,9) shows a bullish crossover, with the MACD line above the signal line and histogram bars expanding positively. This aligns with the recent price surge, indicating accelerating momentum. KDJ readings (K: 78, D: 72, J: 90) approach overbought territory (K >80), suggesting near-term exhaustion risk. However, the MACD-KDJ confluence supports upward continuity if KDJ sustains above 50. Divergence is absent, reinforcing trend coherence.
Bollinger Bands
Bollinger Bands (20-day, 2σ) highlight rising volatility. The bands expanded during the June upswing, with price touching the upper band ($18.00). This signals short-term overextension but confirms bullish strength. Prior band contraction in late May preceded the breakout, validating its significance. A close above the upper band may prompt consolidation, but the mid-band (20-day SMA at $17.40) now acts as dynamic support.
Volume-Price Relationship
Volume analysis reveals accumulation during rallies. The June 6th surge occurred on 11.5M shares, exceeding the 10-day average. Notable volume spikes accompanied key reversals: a 19.4M-share capitulation volume on 2025-05-30 (hammer candle) and 19.9M shares on 2025-03-11 (9.75% rally). This "volume confirmation" validates breakout sustainability. Divergence is absent, though below-average volume on minor pullbacks hints at weak selling pressure.
Relative Strength Index (RSI)
The 14-day RSI (62) is neutral, rising from oversold levels (<30) in late April but not yet overbought (>70). This indicates room for upward movement before exhaustion. The RSI’s climb from 35 to 62 during the May-June recovery aligns with bullish momentum, though its moderate level warrants monitoring for potential divergence on new highs.
Fibonacci Retracement
Applying Fibonacci retracement to the April–May swing (low: $12.82 on 2025-04-10; high: $18.54 on 2025-01-29), the 61.8% level ($16.35) held as support during May’s pullback. The price has now surpassed the 78.6% retracement ($17.22), targeting a full retest of the $18.54 high. Confluence exists here, as the $17.20–$17.30 zone aligns with both Fibonacci and moving average support.
Confluence and Divergence
Significant confluence is observed near $17.20–$17.30 (Fibonacci 78.6%, 50-day MA, and prior resistance-turned-support), solidifying this as a crucial support zone. Divergence is minimal: MACD, RSI, and volume align with price momentum. Only KDJ’s overbought leaning suggests caution, though its warning lacks corroboration from other oscillators. A decisive close above $18.00 would confirm bullish resumption, while failure to hold $17.20 may trigger a retest of $16.70 support.