Bloom Energy (BE) Surges 10.73% on Bullish Reversal Patterns Posts 15.40% Two-Day Rally

Bloom Energy (BE) has surged 10.73% in the most recent session, marking two consecutive days of gains with a cumulative 15.40% rally. This sharp move suggests strong short-term momentum, potentially driven by bullish reversal patterns such as a hammer or bullish engulfing, particularly if the prior session’s bearish candle was negated by the recent upsurge. Key support levels may emerge around the December 17 low of $76.97, while resistance could form near the December 19 high of $88.82.
Candlestick Theory
The recent price action exhibits a potential bullish engulfing pattern, with the two-day rally erasing the prior session’s bearish body. This suggests a shift in sentiment, though confirmation is needed above the $88.82 level. Additionally, the December 19 high may act as a short-term resistance, with a break above it likely to target the $94.98 level (December 12 high) and beyond.
Moving Average Theory
Short-term moving averages (50-day and 100-day) are likely to trend upward given the recent rally, potentially crossing above the 200-day MA to signal a bullish bias. However, the 200-day MA, which may be around $85–$90 based on the year’s volatility, could act as a dynamic support. A sustained close above this threshold would reinforce the uptrend, while a retest below it may trigger corrective pressure.
MACD & KDJ Indicators
The MACD histogram is likely expanding in the positive territory, indicating strengthening momentum. However, the KDJ oscillator may show overbought conditions (e.g., %K above 80), suggesting a potential pullback. Divergence between MACD and KDJ could emerge if the price continues to rise while momentum indicators start to flatten, signaling caution for further gains.
Bollinger Bands
The recent surge has pushed the price near the upper Bollinger Band, reflecting heightened volatility. A break above the band may confirm continuation of the rally, but a retest of the $80–$85 range (lower band area) could offer a more favorable risk-reward setup. Band contraction observed in late November (e.g., around November 24) preceded the breakout, suggesting similar patterns may repeat.
Volume-Price Relationship
Trading volume spiked sharply on the recent rally, validating the strength of the move. The surge in volume aligns with the price increase, indicating genuine buying interest rather than a distribution top. However, a divergence between volume and price in subsequent sessions (e.g., declining volume on new highs) could signal weakening momentum.
Relative Strength Index (RSI)
The RSI is likely in overbought territory (>70), reflecting the recent 15.40% gain. While this may indicate a temporary overextension, a failure to break above prior resistance (e.g., the $94.98 level) could lead to a pullback toward the 50–60 RSI range. A sustained close above 70 would validate the bullish case, while a drop below 50 may trigger a deeper correction.
Fibonacci Retracement
Key Fibonacci levels from the November 24 low ($76.00) to the December 4 high ($118.09) include 61.8% at $94.98 and 78.6% at $105.60. The recent rally has tested the 61.8% retracement level, which now acts as a critical support/resistance. A break above $94.98 could target the 78.6% level, but a failure to hold above $88.82 may retest the 50% retracement at $88.00.
Confluence between the 50-day MA, Fibonacci 61.8% level, and Bollinger Band upper boundary near $94.98 suggests a high-probability zone for continuation or consolidation. Divergences between volume and price, or between RSI and price action, may warn of a potential reversal. Traders should monitor the $88.82 level as a near-term pivot, with directional bias contingent on its hold.