Baker Hughes Extends Rally With 3.46% Gain As Technicals Signal Bullish Momentum

Baker Hughes (BKR) extended its upward momentum, rising 0.43% to close at $40.02 in the latest session—marking the fourth consecutive gain for a cumulative 3.46% advance over this period. This analysis examines technical indicators to contextualize the price action.
Candlestick Theory
Recent sessions exhibit constructive bullish patterns, with three white soldiers forming between July 17–21 ($39.18 to $39.85) confirming a breakout from consolidation. The last four days’ consistent higher lows established support near $39.60, with resistance now evident around the $40.24–$40.21 double-top high from July 21–22. A close above $40.25 would signal bullish continuation.
Moving Average Theory
The current price resides above all key moving averages, with the 50-day MA (approx. $38.50) crossing bullishly above the 100-day (approx. $37.80) and 200-day (approx. $37.20) averages. This golden cross configuration suggests strengthening intermediate-term momentum. Sustained trading above the ascending 50-day MA reinforces the uptrend.
MACD & KDJ Indicators
MACD shows a bullish crossover above its signal line with a widening histogram, reflecting accelerating upside momentum. Concurrently, KDJ oscillators remain elevated but not overbought (K=78, D=72, J=90), supporting near-term bullishness. However, J-line entering overbought territory warrants caution for potential consolidation if KDJ approaches extreme levels.
Bollinger Bands
Bands expanded significantly during the July 14–18 rally ($39.18 to $39.91), highlighting volatility surge. Price currently rides the upper band near $40.24, suggesting near-term exuberance. A band contraction phase may follow, with the $39.60–$39.70 middle band serving as immediate support.
Volume-Price Relationship
Volume surged 41% during the July 18 breakout ($39.72 on 12.1M shares), validating upside conviction. Follow-through volume has moderated but remains above average during advances (9.3M shares on July 21’s $0.33 gain), indicating organic buying pressure. Declines lack significant volume, suggesting weak bearish commitment.
Relative Strength Index (RSI)
RSI-14 holds at 65—above neutral 50 but below overbought 70. This reflects bullish momentum without immediate exhaustion signals. Divergence is absent, as RSI confirms recent highs. Caveat: The indicator may linger near overbought thresholds during strong trends; sustained readings above 70 could precede consolidation.
Fibonacci Retracement
Using the swing high of $49.40 (February 6, 2025) and low of $35.28 (April 4, 2025), key levels emerge: 38.2% ($40.67) and 23.6% ($38.61). Current price near $40.02 tests the 38.2% resistance—a pivotal barrier. Confluence exists here with July 22’s high of $40.24. A decisive breach opens upside toward 50% retracement at $42.34.
Confluence and Divergence Notes
Bullish confluence appears at $40.24–$40.67, where Fibonacci resistance aligns with Bollinger Band boundaries and recent price highs. Divergence is absent among momentum oscillators. However, short-term caution arises from KDJ’s near-overbought J-line and RSI approaching 70 as price challenges key retracement resistance. Volume patterns and moving average alignment continue to favor upside bias.