Brookfield Shares Surge 7.6% Over Two Days As Technicals Signal Bullish Momentum

Brookfield (BN) shares advanced 3.57% in the most recent trading session, extending gains to two consecutive days with a cumulative increase of 7.60%. This momentum is examined through multiple technical lenses to assess the sustainability and potential future trajectory.
Candlestick Theory
The current two-day rally manifests as consecutive bullish candles with the latest session printing a long real body (open: $65.10, close: $68.14), indicating strong buying pressure. This pattern emerges near the recent resistance zone of $68.28 (July 17 high), which now becomes immediate overhead resistance. Support is established at $65.10 (July 17 low), aligning with the psychologically significant $65 level. A bearish rejection candle on July 15 ($64.16 high) highlights this resistance, making its breach crucial for continuation.
Moving Average Theory
Brookfield currently trades above all key moving averages – the 50-day ($60.25), 100-day ($56.80), and 200-day ($54.40) – confirming a major uptrend. The ascending alignment (50 > 100 > 200) exhibits a bullish hierarchy. Recent price action crossed above the 50-day MA on July 10, catalyzing the current leg higher. The convergence of price with rising moving averages suggests robust trend support near $62–$63, though a close below the 50-day MA would signal near-term weakness.
MACD & KDJ Indicators
The MACD (12,26,9) shows a bullish crossover above the signal line emerging on July 16, supported by expanding histogram bars – indicative of accelerating upside momentum. Concurrently, the KDJ oscillator (14-period) has K-line (82) and D-line (75) penetrating the overbought threshold (>80), though J-line (96) suggests extended buying pressure. While confirming short-term bullishness, KDJ’s overbought reading introduces caution for potential consolidation. No bearish divergence is observed versus price.
Bollinger Bands
Price currently hugs the upper Bollinger Band (20-day, 2σ) at $68.30, reflecting strong upside momentum. Bandwidth expanded sharply during the 7.60% two-day surge, signaling increased volatility favoring bulls. The breach of the midline ($63.80) on July 16 provided a launchpad for the breakout. Sustained trading near the upper band suggests continuation potential, though mean reversion risk rises with Bollinger Band "tag" events.
Volume-Price Relationship
Recent gains are validated by rising volume, culminating in the highest single-day volume in three weeks on July 17 (5.2M shares). The volume surge during upside breaks through $65 and $68 resistance demonstrates conviction. However, the preceding downtrend (July 7-15) saw diminishing volume, indicating lack of selling pressure. This volume profile supports the bullish structure but warrants monitoring for volume contraction during new highs.
Relative Strength Index (RSI)
The 14-day RSI reads 76, entering overbought territory (>70). Historically, similar RSI peaks coincided with minor consolidations, such as the pullback after the March peak (RSI 82). While overbought conditions suggest near-term exhaustion risk, the absence of bearish divergence – RSI continues making higher highs with price – implies underlying strength. Traders should note this warns of potential consolidation rather than reversal.
Fibonacci Retracement Levels
Applying Fibonacci to the primary trend (swing low $42.91 on August 7, 2024; swing high $68.28 on July 17, 2025), key retracement supports emerge at $61.20 (23.6%), $58.80 (38.2%), and $55.60 (50%). The 23.6% level aligns with the July 16 low ($63.32) and the 50-day MA, establishing a critical confluence zone. Fibonacci extensions suggest resistance at $70.60 (127.2%) if momentum persists.
Confluence & Divergence
Significant bullish confluence exists: moving averages underpin price; volume confirms upside breaks; MACD acceleration supports trend strength; and the $63–65 Fibonacci/MA zone held during July pullbacks. No material bearish divergences are evident, though RSI and KDJ overbought readings suggest consolidation may precede further gains. Key resistance is $68.28–$70.60, while a close below $65.10 would invalidate immediate bullish momentum.