CRH Jumps 9.55% on Breakout as Technicals Signal Bullish Momentum

CRH surged 9.55% in the latest session, closing at 106.92 on elevated volume, breaking above a recent consolidation range. This decisive price action prompts a multi-indicator assessment of CRH’s technical trajectory, emphasizing confluence and divergences within the framework below.
Candlestick Theory
The 9.55% bullish candle on August 7, 2025, exhibits a long body with minimal upper wick, signaling robust buying conviction after three sessions of minor retracement. This pattern resembles a bullish engulfing formation when contextualized with preceding candles, invalidating the short-term pullback to 97.00 (August 6 low). Key support now resides at 104.50 (yesterday’s low), with resistance at the new high of 107.20. A sustained close above 107.20 may confirm continuation, while failure to hold 104.50 could signal exhaustion.
Moving Average Theory
CRH trades significantly above its major moving averages, reflecting a strong uptrend. The 50-day MA (approx. 97.80) and 100-day MA (approx. 94.20) slope upward, with the 200-day MA (approx. 91.50) reinforcing the long-term bullish bias. The price remains above all three averages, and the sequence (50 > 100 > 200) confirms the trend’s integrity. Yesterday’s breakout amplifies this structure, though a close below the 50-day MA would warrant caution.
MACD & KDJ Indicators
The MACD (12,26,9) shows a bullish crossover, with the histogram expanding positively following the surge—a momentum confirmation. However, the KDJ (9,3,3) signals overbought conditions, with K (95) and D (88) exceeding 80. While MACD supports trend strength, KDJ’s proximity to 100 suggests near-term exhaustion risk. No bearish divergence is evident, but the KDJ overextension warrants monitoring for a pullback.
Bollinger Bands
Volatility expanded sharply during the breakout, with price closing near the upper band (approx. 107.00). This deviation from the 20-day SMA (approx. 100.50) indicates overextension. Historically, such expansions led to brief consolidation (e.g., mid-July 2025). Bandwidth contraction preceding the breakout signaled impending volatility, but current price positioning warns against immediate chasing of the rally.
Volume-Price Relationship
Yesterday’s volume (9.76M shares) was 108% above the 30-day average, validating the breakout. This surge follows four sessions of declining volume during consolidation, typical of accumulation. The volume spike aligns with bullish candlestick theory, endorsing sustainability. However, failure to maintain elevated volume could undermine upside follow-through.
Relative Strength Index (RSI)
The 14-day RSI (76.4) entered overbought territory (>70) for the first time since April 2025, driven by the 9.32-point gain. While this reflects strong momentum, it historically precedes minor pullbacks (e.g., late March 2025). As an early warning indicator, the RSI advises against aggressive entry here, though it may remain elevated in strong trends. A dip below 70 could signal short-term cooling.
Fibonacci Retracement
Using the swing low of 81.54 (August 8, 2024) and swing high of 107.20 (August 7, 2025), key retracement levels include the 23.6% (101.15), 38.2% (97.40), and 50% (94.37). The July pullback to 95.24 respected the 50% level before reversing, implying institutional support. Current price sits above the 23.6% retracement, which now acts as major support. A retest of 101.15 could offer an optimal risk/reward entry.
Confluence and Divergence Observations
Confluence exists between volume-backed candlestick theory, MACD momentum, and Fibonacci support (101.15), collectively endorsing the bullish breakout. Divergence emerges in overbought KDJ/RSI readings against MACD, suggesting potential short-term consolidation. The Bollinger Band expansion and RSI overheating imply limited near-term upside without digestion. The primary trend remains intact, but tactical patience may be prudent pending a retest of 104.50–101.15 support.