Teva Pharmaceutical Shares Surge 5.99% In Two Days As Technicals Signal Bullish Momentum

Teva Pharmaceutical (TEVA) shares closed at $19.45 on September 23, 2025, marking a 3.07% single-day gain and a 5.99% two-day rally, with trading volume reaching 12.88 million shares. This upward momentum provides context for the technical assessment below.
Candlestick Theory
Recent price action shows two consecutive bullish candles, with the latest session forming a long-body white candle closing near its high ($19.89 high vs $19.45 close), indicating strong buying pressure. Resistance is evident near the $19.90-$20.00 psychological barrier, where multiple peaks converged in early September. Support emerges around $18.35 (September 19 low), reinforced by the September 15 hammer candle that arrested a 5.22% decline. A break above $20.00 would signal continuation, while failure to hold $19.20 may trigger profit-taking.
Moving Average Theory
The 50-day MA ($18.25) maintains its position above the 100-day MA ($17.85) and 200-day MA ($17.20), confirming a sustained bullish sequence. Price is currently trading 6.6% above the 50-day MA, reflecting strong short-term momentum. The golden cross (50-day crossing above 200-day) established in August remains intact, suggesting intermediate-term upside potential.
MACD & KDJ Indicators
MACD (12,26,9) shows a bullish crossover with the histogram expanding positively (+0.08), confirming accelerating momentum. KDJ readings (K:74, D:68, J:86) indicate approaching overbought territory, though J-line strength at 86 suggests momentum may persist temporarily. Divergence appears between KDJ’s overbought warning and MACD’s continued bullishness, requiring vigilance for potential near-term consolidation.
Bollinger Bands
Price is testing the upper band ($19.50) after the bands expanded 8% during the two-day rally, signaling increasing volatility. The 20-day average volatility (measured by band width) remains 15% above its late-August low, supporting continuation potential. A rejection from the upper band could retest the 20-day SMA ($18.80) midline support.
Volume-Price Relationship
The recent rally is validated by rising volume, with September 22 volume (14.99 million shares) exceeding the 20-day average by 24%. Accumulation/distribution line trends upward, confirming capital inflow. However, today’s volume was 14% lower than yesterday’s despite a higher close, introducing minor sustainability concerns.
Relative Strength Index (RSI)
The 14-day RSI reads 68, nearing overbought territory (70+) but retaining upward momentum. This aligns with July’s pattern where RSI hovered near 70 for five sessions before reversing. RSI divergence is absent relative to price peaks, though traders should monitor for bearish divergence if new highs form with declining RSI.
Fibonacci Retracement
Using the July 30 high ($21.53) and July 31 low ($15.45), key levels include 23.6% ($17.87), 38.2% ($18.95), and 61.8% ($19.95). Current price resides near the 23.6% resistance-turned-support ($17.87), having reclaimed it decisively. The next significant barrier is the 38.2% level at $19.95, closely aligning with candlestick resistance at $20.00.
Confluence and Divergence Notes
Confluence appears between the Fibonacci 38.2% level ($19.95), Bollinger upper band ($19.50), and historical resistance ($19.93), creating a critical technical cluster. Divergence exists between KDJ’s overbought signal and the MACD/volume confirmation of upside momentum. The moving average alignment and candlestick breakout suggest continued upside bias toward $19.95-$20.00, though RSI and KDJ readings warrant caution for potential consolidation if this resistance zone holds.