Comfort Systems USA Jumps 3.3% As Technicals Signal Bullish Continuation

Comfort Systems USA (FIX) advanced 3.32% to $723.95 in the latest session, marking a two-day gain of 3.63% amid growing bullish momentum.
Candlestick Theory
Recent price action shows a bullish reversal pattern emerging near the $690 support level established during the August consolidation. The 09/02-09/03 sessions formed a bullish harami, with the 09/04 white candle confirming upside momentum by eclipsing the $724 resistance. Immediate resistance appears near the $730 swing high from 08/28, while sustained closes below $695 would invalidate the bullish structure. Volume-supported advances during the rebound strengthen the reliability of these key levels.
Moving Average Theory
The 50-day EMA ($655), 100-day EMA ($598), and 200-day EMA ($475) maintain an upward-sloping configuration, confirming a primary bullish trend. Recent price stabilization above the 50-day EMA provided a launchpad for the current advance. Of note, the 50-day/100-day EMA golden cross has held since June, reinforcing intermediate-term strength. The current rebound occurs with price trading above all key moving averages – a hallmark of robust bullish momentum.
MACD & KDJ Indicators
MACD registers a bullish crossover as the signal line reclaims positive territory following a brief dip below the zero line in late August. This coincides with KDJ’s ascent from oversold territory (<20 on 08/29) toward overbought conditions (K=72, D=65), suggesting accelerating upside momentum. While both oscillators now approach overbought thresholds, their synchronized upward trajectories signal continued near-term strength before exhaustion becomes a concern.
Bollinger Bands
Price recently rebounded off the lower Bollinger Band ($691) during the late-August contraction phase, with the subsequent expansion phase now testing the mid-band ($705). The 13% band width increase since 09/02 confirms volatility normalization. Acceptance above the mid-band could trigger a move toward the upper band at $754. The sharp price rejection of the lower band implies robust support near $690, establishing that zone as critical for bullish continuity.
Volume-Price Relationship
The advance’s credibility is reinforced by expanding volume, with 342,026 shares traded on 09/04 – significantly above the 30-day average (388,000). Earlier resistance tests at $730 (08/28) occurred on comparatively lower volume (366,394 shares), suggesting insufficient demand for breakout sustainability. Current momentum gains volume validation, with accumulation days increasing the probability of a $730 retest.
Relative Strength Index
The 14-day RSI reading of 62 reflects recovering momentum from near-neutral levels but remains shy of the overbought threshold. Notably, the RSI failed to breach oversold territory (<30) during late August’s pullback, establishing positive divergence relative to the price correction. While daily RSI leaves room for additional upside, the weekly RSI (69) warns of historically extended conditions when compared against long-term peaks above 80.
Fibonacci Retracement
Applying Fibonacci levels to the $356.77 low (04/09) and $729.06 high (08/29) reveals key retracement zones. The recent pullback found support near the 23.6% level ($690), consolidating above this threshold before the current advance. The 38.2% retracement at $657 now serves as major downside support. Should bullish momentum persist, key resistance emerges at the 161.8% extension level of $748, coinciding with the Bollinger upper band. The recovery from a shallow Fibonacci pullback underscores underlying trend strength.
Confluence & Divergence Notes
Confluence exists between the Fibonacci 23.6% level ($690), lower Bollinger Band ($691), and volume-supported bounce, creating a high-probability support cluster. Divergence appears between weekly RSI proximity to overbought territory and daily oscillators that still show expansion capacity. This discrepancy warrants monitoring, as MACD bullish crosses during weekly RSI >65 have historically preceded short-term consolidation. The prevailing technical landscape suggests an ongoing bullish phase, with decisive closes above $730 needed to confirm continuation.