Bunge Surges 3.2% on Six-Day Winning Streak, Cumulative Gain Reaches 17.5%

Bunge (BG) has surged 3.20% in the latest session, extending its winning streak to six consecutive days with a cumulative gain of 17.54%. This sustained upward momentum suggests a strong bullish bias, warranting a detailed technical assessment across multiple frameworks to evaluate trend strength, potential reversals, and confluence points.

Candlestick Theory

Recent price action reveals a series of higher highs and higher lows, forming a bullish ascending channel. Key resistance levels are identified at $106.62 (prior peak) and $108.84 (most recent high), while critical support lies around $102.59 and $97.51 (previous consolidation zones). A bullish engulfing pattern emerged on 2026-01-14, confirming a breakout from a short-term descending trendline. However, the price’s proximity to the upper Bollinger Band (discussed later) suggests overbought conditions, raising the probability of a near-term pullback to test these support levels.

Moving Average Theory

Short-term momentum is reinforced by the 50-day MA crossing above the 200-day MA, forming a “golden cross” in late 2025, which historically signals a bullish trend. The 100-day MA currently sits at ~$89.50, lagging behind the 50-day MA (~$98.50) and price (~$108.83), indicating strong upward momentum. However, the 200-day MA (~$85.00) remains a critical long-term support. Confluence between the moving averages and the ascending channel suggests the trend is intact, though a close below the 50-day MA would invalidate the bullish case.

MACD & KDJ Indicators
The MACD histogram has been expanding positively since late 2025, with the MACD line (12-period) above the signal line (26-period), confirming bullish momentum. However, the histogram’s recent flattening suggests waning acceleration, increasing the likelihood of a near-term consolidation phase. The KDJ oscillator (stochastic) shows overbought conditions (K > 80), with the %K line diverging from price highs on 2026-01-15, hinting at potential exhaustion. This divergence, combined with the MACD’s flattening, suggests a probable pullback to test the 50-day MA (~$98.50) as a key support.

Bollinger Bands

Volatility has expanded recently, with the price trading near the upper Bollinger Band ($108.84), a classic overbought signal. The bands’ width has widened from a contraction phase in late 2025, suggesting an impending breakout or breakdown. A retest of the lower band (~$93.00) could occur if the upper band’s resistance fails, but the current positioning near the upper band implies a higher probability of a continuation above $108.84, provided volume remains robust.

Volume-Price Relationship

Trading volume has surged alongside the price rally, with recent sessions (e.g., 2026-01-15) showing volumes exceeding 2.5 million shares—well above the 60-day average of ~1.5 million. This validates the strength of the uptrend. However, a decline in volume on future uplegs could signal weakening conviction, particularly if the price fails to break above $108.84.

Relative Strength Index (RSI)

The 14-period RSI is currently above 70, confirming overbought conditions. While this does not guarantee an immediate reversal, it raises the risk of a correction to the 50–60 RSI range (~$95–$100). A failure to re-enter the overbought territory on a subsequent rally would likely indicate a bearish shift.

Fibonacci Retracement

Applying Fibonacci levels from the recent high ($108.84) to the low ($82.49) in late 2025, key retracement levels at 23.6% (~$96.50), 38.2% (~$92.00), and 50% (~$95.66) act as potential support zones. The 61.8% level (~$88.00) represents a critical psychological threshold; a break below this would invalidate the broader bullish case.

Conclusion

Confluence between the bullish channel, moving averages, and expanding volume supports the continuation of the uptrend, with a target above $108.84. However, divergences in the KDJ and MACD, combined with overbought conditions in RSI and Bollinger Bands, suggest a high probability of near-term consolidation. Traders should monitor the 50-day MA and Fibonacci levels for potential support, while a breakdown below $95.66 (38.2% retracement) would signal a higher risk of a deeper correction. The current setup favors a bullish bias with tight stop-loss placement near $92.59 (prior swing low).