Amphenol (APH) Surges 3.38% on Bullish Engulfing Pattern as Bollinger Bands and Golden Cross Signal Uptrend

Amphenol (APH) closed the most recent session with a 3.38% gain to $139.71, forming a bullish engulfing pattern on the daily chart. This suggests a potential reversal from a prior downtrend, with key support at $129.24 (December 12 low) and resistance confirmed at $139.71. The candlestick structure indicates strong buying pressure, particularly as the session’s high of $139.94 aligns with the upper Bollinger Band, which has expanded following a period of consolidation.
Candlestick Theory

The recent price action reflects a strong bullish bias, with the $139.71 close surpassing prior resistance levels. A critical support zone exists between $129.13 (December 16 close) and $126.51 (December 17 low), where a prior bearish breakdown failed to hold. The absence of a bearish reversal pattern at these levels suggests buyers remain in control.
Moving Average Theory
Short-term momentum is reinforced by the 50-day moving average ($134.50–136.00 range) crossing above the 100-day ($132.50–134.50) and 200-day ($125.00–127.00) averages, forming a golden cross. The 200-day MA, a key long-term trendline, is currently acting as dynamic support. The 50-day MA aligns with the upper Bollinger Band at $139.71, suggesting the uptrend remains intact.
MACD & KDJ Indicators
The MACD histogram has turned positive, with the line crossing above the signal line, indicating strengthening bullish momentum. The stochastic oscillator (KDJ) shows overbought conditions (K at 80+, D at 75+), raising caution about near-term exhaustion. However, the KDJ divergence (price higher highs vs. oscillator lower highs) is absent, reducing immediate reversal risk.
Bollinger Bands
Volatility has expanded following a period of contraction in late November–early December, with the current price near the upper band. This suggests the stock is in a strong trending phase. A break above $139.94 (January 27 high) could trigger further expansion, while a pullback to the middle band ($135.00–136.00) would test trend strength.
Volume-Price Relationship
Trading volume spiked to 7.18 million shares on the recent rally, validating the move. However, volume has not yet surpassed the December 19 surge (17.54 million shares), which accompanied a 4.38% jump. This suggests the current bullish momentum, while strong, may require additional volume to confirm a sustainable breakout.
RSI
The 14-day RSI stands at 68–70, nearing overbought territory. While this does not guarantee a reversal, it signals that short-term traders may take profits. A close below 60 would indicate weakening momentum, while a sustained above-70 reading could extend the rally.
Fibonacci Retracement
Key Fibonacci levels from the December 12 low ($129.24) to the January 27 high ($139.94) include 38.2% ($135.50), 50% ($134.59), and 61.8% ($133.68). The current price near $139.71 suggests a potential pullback to the 38.2% level, where buyers may re-enter.
Confluence & Divergences
The bullish bias is reinforced by alignment between the moving averages, Bollinger Bands, and candlestick patterns. However, the overbought RSI and KDJ levels create a short-term risk of a profit-taking selloff. Volume remains supportive, but traders should monitor whether buying pressure sustains above $135.00.