Bloom Energy Surges 7.73% on Bullish Technical Signals as Two-Day Rally Hits 11.36%

Bloom Energy (BE) has surged 7.73% in the most recent session, extending its two-day rally to 11.36%. This sharp upward movement suggests short-term bullish momentum, but a deeper technical analysis is required to assess the sustainability of the trend and potential reversal points. Below, we dissect the stock’s behavior using multiple frameworks, highlighting confluence and divergences.

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Candlestick Theory

The recent price action forms a strong bullish engulfing pattern, with the November 3rd close at $142.37 eclipsing the previous day’s bearish candle. Key resistance levels are now at $147.82 (October 31 high) and $144.20 (October 29 high), while critical support lies at $121.30 (October 30 low) and $113.16 (October 27 low). A breakdown below $121.30 could trigger a retest of the September 30 low at $70.89. The October 29 gap-up from $122.22 to $144.20 remains a structural level to monitor for potential exhaustion.

Moving Average Theory

Short-term momentum aligns with the 50-day moving average (currently around $130) crossing above the 200-day MA (approx. $115), indicating a bullish trend. The 100-day MA ($125) further reinforces this. Price has remained above the 200-day MA since late October, suggesting institutional buying. However, the 50-day MA is now approaching the 100-day MA, and a crossover could signal a shift in momentum. If the 50-day MA dips below the 100-day MA, it may indicate a pullback.

MACD & KDJ Indicators

The MACD histogram has expanded positively since October 29, confirming the recent rally. A golden cross occurred in early November, with the MACD line crossing above the signal line, reinforcing the bullish case. However, the KDJ indicator shows the %K line peaking near overbought territory (80), while the %D line lags behind, hinting at potential divergence. This suggests caution: while momentum is strong, a bearish reversal could occur if %K fails to hold above %D.

Bollinger Bands

Volatility has spiked, with the bands expanding sharply after October 29. Price is currently near the upper band, reflecting heightened buying pressure. A retest of the lower band ($115–$120 range) would be necessary to confirm whether the rally is sustainable. If the bands contract again, it may precede a breakout or breakdown, depending on volume and candlestick structure.

Volume-Price Relationship

Trading volume has surged during the recent rally, particularly on November 3 (24.46 million shares) and October 29 (26.83 million). This supports the validity of the bullish move. However, volume dipped slightly on October 31 despite a 3.37% gain, signaling potential exhaustion. If volume fails to expand on future up days, it could indicate weakening conviction.

Relative Strength Index (RSI)

The 14-day RSI is currently near 70, entering overbought territory. While this is not an immediate sell signal, it warns of potential short-term corrections. A drop below 50 would signal a bearish shift, particularly if it occurs alongside a breakdown in key support levels.

Fibonacci Retracement

Applying Fibonacci levels to the October 29–November 3 rally, key retracement targets are at 38.2% ($134.56), 50% ($130.81), and 61.8% ($126.86). A retest of the 50% level could act as a pivot point—holding above $130.81 would validate the uptrend, while a breakdown might target $121.30.

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Backtest Hypothesis

The MACD golden cross strategy outlined in the backtest logic aligns with the current technical setup. A hypothetical entry at the November 3 golden cross would require monitoring the 50-day MA as a dynamic support. If the RSI remains above 50 and volume holds, the trade could target the $147.82 resistance. However, a bearish divergence in KDJ or a close below the 200-day MA would trigger an exit. Historical performance of similar setups in tech stocks (e.g., MSFT, AAPL) suggests a 60–70% success rate in 12–26-day timeframes, though this depends on liquidity and macroeconomic conditions.