Brookfield Shares Surge 3.88% As Technical Indicators Signal Strong Bullish Momentum

Brookfield (BN) shares closed at $65.79, gaining 3.88% on July 16, 2025, with trading volume of 3.47 million shares, reflecting strong bullish momentum in the latest session. This analysis employs multiple technical frameworks to assess the stock's trajectory.
Candlestick Theory
The recent long green candle closing near the session high ($65.79 vs. high of $65.81) signals strong buying pressure. This follows a hammer pattern formed on July 14 (low: $62.53, close: $63.87), which anticipated the current rebound. Key support resides near $63.30 (July 15 low and recent consolidation zone), while resistance is evident at the $65.80-$66.00 range, aligning with the 2025 high. A sustained break above $66 would confirm bullish continuation.
Moving Average Theory
The price remains above all critical moving averages: 50-day (~$61.50), 100-day (~$58.80), and 200-day (~$52.70), confirming a long-term uptrend. The 50-day MA has consistently acted as dynamic support during pullbacks, most notably in early July. The ascending order of MAs (50 > 100 > 200) reinforces bullish structure. However, the expanding gap between price and 50-day MA (~6.5%) suggests potential short-term overextension.
MACD & KDJ Indicators
MACD (12,26,9) shows a bullish crossover above the signal line, with histogram bars expanding – indicating accelerating upward momentum. KDJ exhibits overbought conditions (K: 82, D: 75, J: 96), though such levels can persist during strong trends. The concurrence of MACD momentum and KDJ overbought readings reflects robust but potentially overheated buying interest. Monitoring for KDJ bearish crossovers is warranted for reversal signals.
Bollinger Bands
Price trades near the upper band ($66.20) after breaking out from a band squeeze in early July, signaling increased volatility and directional strength. Band expansion supports trending behavior. While upper-band tags can denote overbought conditions, they may also indicate momentum continuation. Sustained trading above $65.50 would validate bullish strength, with the middle band (~$62.50) serving as near-term support.
Volume-Price Relationship
The surge to 3.47 million shares on July 16’s rally (vs. 30-day avg ~2.2M) confirms bullish conviction. Notably, prior significant advances (e.g., April 9: +12.89% on 8.69M volume) were similarly validated by high volume. Recent distribution days (July 10: 2.42M volume on +2.22% gain) showed supportive volume, though less emphatic than accumulation phases. The current volume surge enhances the breakout’s credibility.
Relative Strength Index (RSI)
The 14-day RSI (~68) approaches overbought territory (70+) but remains below extreme levels. Historically, Brookfield has tolerated RSI readings between 70-75 before meaningful pullbacks (e.g., early April 2025). Current momentum may test RSI resilience. While not yet signaling exhaustion, it suggests limited near-term upside before consolidation.
Fibonacci Retracement
Using the primary swing low ($42.91 on August 7, 2024) to high ($65.79), key retracement levels are established. The 23.6% level ($60.50) recently provided support during July’s pullback. The 38.2% level ($57.50) aligns with the 100-day MA and the April consolidation zone, offering a major support confluence. Resistance beyond the current high projects toward the 127.2% extension near $68.50. The stock’s respect for the 23.6% Fib during the July dip reinforces the overall uptrend.
Confluence & Divergence Observations
Strong confluence exists between the 23.6% Fibonacci retracement ($60.50), the 50-day MA, and psychological support at $60.00, creating a robust demand zone. Divergence emerges in oscillators: While RSI and KDJ suggest overbought risks, MACD’s accelerating momentum and volume-backed price action advocate continuation. This divergence implies potential near-term consolidation rather than an immediate reversal. The price structure remains decisively bullish across timeframes, supported by volume and MA alignment, though overextended oscillators increase sensitivity to profit-taking near the $66-$67 resistance band.