West Pharmaceutical Surges 22.78% on Bullish Technicals and Heavy Volume

West Pharmaceutical (WST) concluded the most recent session with a dramatic 22.78% surge to $279.10, marking its third consecutive day of gains and a cumulative 32.85% advance over this period. This follows a strong recovery from its 52-week low near $183, contrasting with its all-time high around $348 earlier in the data period.
Candlestick Theory
Recent sessions reveal a bullish reversal pattern. The three white soldiers formation emerged from July 22-24, characterized by successively higher closes on increasing volume. This pattern signals strong buying momentum after the stock tested support near $210 (July 21 low). Resistance now appears at $291 (July 24 high), while the $270.59 intraday low from that session offers immediate support. The long green candle on July 24—covering 87% of the day’s range—confirms aggressive accumulation.
Moving Average Theory
The 50-day and 100-day moving averages exhibit a bullish crossover below current prices, confirming intermediate-term upside momentum. More significantly, the 200-day moving average (now near $260) provided reliable support during the mid-July pullback. With the price trading 18% above the 200-day MA, the long-term trend remains upward, though the rapid ascent risks a mean-reversion pullback toward the 50-day MA near $240 if momentum stalls.
MACD & KDJ Indicators
MACD shows strong bullish confirmation, with the histogram expanding positively since July 20 as the signal line crossed above zero. KDJ readings are overbought (K:86, D:79, J:100), typically suggesting exhaustion, but the continued strong price action indicates persistent momentum. Notably, KDJ’s failure to decline during minor pullbacks in early July demonstrated underlying strength. Watch for MACD divergence on the next retracement for reversal clues.
Bollinger Bands
A volatility expansion triggered the late-July rally as prices broke above the upper band ($245 on July 22), entering an overextended phase. While the bands remain wide, suggesting ongoing volatility, the price has now spent three sessions significantly above the upper band—historically a precursor to consolidation. Support shifts to the 20-period moving average (now $245) at the band’s midline.
Volume-Price Relationship
Volume patterns validate the breakout. The July 24 surge occurred on 2.44 million shares—nearly double the 30-day average—indicating conviction. Similarly, the July 22-23 advances saw volume expand 40% above average. Contrast this with the July 18 sell-off, where high volume confirmed distribution. Sustained volume above average during rallies reinforces the uptrend’s credibility.
Relative Strength Index (RSI)
The 14-day RSI sits at 78, technically overbought but not yet at extremes seen during prior parabolic moves (e.g., February 2025, when RSI exceeded 85 before a sharp reversal). While overbought conditions warrant caution, RSI can remain elevated during strong trends. The indicator’s previous bullish divergence in June—when RSI formed higher lows while prices tested $210—foreshadowed the current rally. A dip below 70 would signal cooling momentum.
Fibonacci Retracement
Using the March 2024 high ($348) and October 2024 low ($183) as anchor points, key Fibonacci levels frame recent action. The 61.8% retracement ($286) rejected the rally on April 23-24, 2025, triggering a 30% correction. Current prices are challenging this critical resistance again. A sustained break above $286 opens the path to the 78.6% level ($315). On pullbacks, the 50% retracement ($265) and 38.2% level ($240) offer major support zones.
Confluence and Divergence Observations
Strong confluence exists between Fibonacci resistance ($286), the KDJ overbought signal, and Bollinger Band extension—increasing near-term consolidation probability. However, MACD and volume confirmations suggest pullbacks may be shallow, with the $265–$270 zone (July 24 low + 50% Fibonacci) offering robust support. A notable divergence emerged in late June when prices undercut the May low ($215), but RSI held above its prior low—a hidden bullish divergence preceding the current advance.
The analysis suggests West Pharmaceutical is in a powerful uptrend, though technically extended. A consolidation phase near $275–$290 appears probable, with the $286 Fibonacci level pivotal for sustaining the bullish structure. Traders should monitor volume on retracements for signs of distribution, while a decisive close above $291 would signal continuation toward $315.