CRH Cement Jumps 3.13% on Technical Breakout as Volume Surges 32%

CRH cement (CRH) rose 3.13% in the latest session to close at 98.22, breaking above the previous day's high of 95.78 on elevated volume of 3.81 million shares. This strong performance occurs within a complex technical landscape that we analyze through multiple frameworks.
Candlestick Theory
Recent sessions show a bullish reversal pattern emerging. The 3.13% white candle on August 4th closed near its high after three consecutive bearish candles, forming a morning star-like pattern. Key resistance now sits at the July 25th swing high of 100.23, while support is established at the 200-day moving average (95.50) and the July 17th low of 91.26. The breach of the immediate resistance at 95.78 suggests bullish momentum, though confirmation requires a close above 100.23.
Moving Average Theory
The 50-day (94.80), 100-day (93.20), and 200-day (95.50) moving averages show a bullish alignment. August 4th's close above all three key averages indicates strengthening momentum. Notably, the 50-day crossed above both the 100-day and 200-day averages in July, confirming an intermediate bullish trend. The proximity of the 200-day average provides a critical support floor during pullbacks.
MACD & KDJ Indicators
The MACD histogram has turned positive after a bullish crossover below the zero line, signaling emerging upside momentum. Meanwhile, the KDJ indicator presents a conflict: The %K line (87) and %D line (83) are overbought, but a bullish divergence occurred in late July when price made lower lows while KDJ posted higher lows. This suggests bearish momentum may be waning despite overbought readings, requiring confirmation from other oscillators.
Bollinger Bands
Volatility expansion is evident as price touched the upper band (98.60) on August 4th after a period of band contraction in July. This breakouts from the squeeze typically indicates continuation potential. The width expansion from 3.2 to 4.8 points over three sessions reinforces the volatility surge. Upper band rejection near 99.00 would signal short-term exhaustion, while a sustained breach targets 101.50.
Volume-Price Relationship
The August 4th advance was validated by volume increasing 32% above the 20-day average. Significant volume milestones include the July 25th bullish engulfing candle on 8.79 million shares (highest in 3 months) and the July 12th breakdown on above-average volume. Current volume patterns support bullish continuation, though deteriorating volume on rallies would undermine sustainability.
Relative Strength Index (RSI)
The 14-day RSI reading of 62 resides in neutral territory, recovering from an oversold 38 reading in mid-June. This reset mitigates concerns about overextension despite the recent sharp rally. Bearish divergence concerns from April-May (when price highs rose while RSI declined) were negated by June's correction. Current momentum suggests room to approach overbought territory before warning signs emerge.
Fibonacci Retracement
Applying Fibonacci to the April-July downswing (110.97 to 88.15), key levels emerge: The 38.2% retracement at 96.50 was decisively breached in the latest session, transforming prior resistance into support. The 50% level at 99.56 becomes the next upside target, aligning with the psychological 100.00 barrier. Significant confluence exists at 95.60 (200-day MA/23.6% Fibonacci), creating a strong support zone.
Confluence & Divergence
Multiple indicators align at 95.50-96.50: This zone combines the 200-day moving average, 23.6% Fibonacci retracement, and prior swing high, creating high-probability support. Divergence appears between KDJ's overbought signal and MACD's emerging bullish crossover, suggesting potential near-term consolidation before directional resolution. Volume confirmation of price breakouts remains the most consistent bullish factor across indicators.
In conclusion, CRH exhibits strengthening technical structure with multiple confirmations of the emerging uptrend. The decisive break above key moving averages and Fibonacci resistance, backed by expanding volume, suggests a probable test of 99.50-100.00 resistance. Traders should monitor 96.50 as critical support; a sustained breach would invalidate the bullish thesis and expose the 93.20 confluence zone (100-day MA/prior consolidation).