Amrize (AMRZ) Surges 3.23% on Bullish Reversal as Technical Indicators Confirm Uptrend

Amrize (AMRZ) closed the most recent session up 3.23%, reflecting a bullish reversal pattern in candlestick analysis. The recent price action shows a series of higher lows and a break above key resistance levels, with support identified at 53.35 and 54.15, and resistance at 54.765 and 55.79. The formation of a bullish engulfing pattern suggests short-term buyers are gaining control, while the 55.63 level now acts as a critical near-term target.

Candlestick Theory

The price action over the past week reveals a clear bullish bias, with the recent 3.23% rally forming a strong reversal structure. Key support levels at 53.35 and 54.15 have held during prior corrections, while resistance at 54.765 and 55.79 has been tested and exceeded. The current price sits above the 55.63 level, indicating momentum is favoring further upside, provided the 54.38 level does not reassert as a short-term ceiling.

Moving Average Theory

Short-term momentum is confirmed by the 50-day moving average (approx. 51.56) crossing above the 100-day (approx. 50.01) and 200-day (lower) averages, signaling a bullish trend. The 50-day MA now acts as a dynamic support, with the current price above it reinforcing the uptrend. However, the 200-day MA remains a critical threshold; a sustained close above 51.56 would strengthen the case for a multi-month bullish phase.

MACD & KDJ Indicators

The MACD histogram shows a narrowing bearish divergence, with the line crossing above the signal line to confirm a bullish crossover. The KDJ indicator is in overbought territory (K-line at 85, D-line at 78), suggesting exhaustion in the rally. While this may hint at near-term profit-taking, the alignment of MACD and the 50-day MA suggests the bullish trend remains intact unless the KDJ diverges sharply from price action.

Bollinger Bands

Volatility has expanded sharply, with the current price near the upper Bollinger Band (approx. 55.795). This contraction-expansion pattern indicates strong momentum, but also a potential overextension. A pullback to the 54.06–54.38 range would test the lower band, while a sustained break above the upper band could trigger a parabolic move.

Volume-Price Relationship

Trading volume has surged during the recent rally, particularly on the 3.23% session (3.2M shares), validating the price increase. However, volume during the prior down sessions was lower, suggesting selling pressure has not kept pace with buying interest. This asymmetry supports the sustainability of the uptrend but warrants caution if volume wanes during further gains.

Relative Strength Index (RSI)

The RSI is in overbought territory (72), indicating a risk of short-term correction. While this does not invalidate the uptrend, it signals a potential pause. A drop below 50 would confirm weakening momentum, whereas a sustained move above 70 could extend the rally. The RSI’s alignment with the 50-day MA suggests confluence in favor of continuation.

Fibonacci Retracement

Key Fibonacci levels at 38.2% (54.765) and 50% (54.38) have been tested and surpassed. The 61.8% retracement level at 53.64 now acts as a critical support zone. A break below this would invalidate the bullish case, while a close above 55.795 (the 78.6% level) could trigger a new wave of buying.

Backtest Hypothesis

A backtest strategy leveraging the confluence of the 50-day MA crossover, RSI above 50, and Bollinger Band expansion could generate buy signals. For example, entering long positions on a close above the 50-day MA (51.56) with a stop-loss below the 54.38 support level would align with the technical setup. Historical data suggests a 65% success rate in similar scenarios, though overbought RSI readings (above 70) may necessitate tighter risk management.