CRH Shares Surge 5.40% on Bullish Technicals, Extend Two-Day Gains to 6.92%

CRH (CRH) surged 5.40% in the most recent session, extending its upward momentum with a 6.92% gain over two trading days. This price action suggests short-term bullish sentiment, though technical indicators must be evaluated to assess sustainability and potential reversals. Below is a structured analysis of key technical approaches.

Candlestick Theory

Recent price action reveals a bullish engulfing pattern on January 9, 2026, as the candle’s body fully contains the prior session’s range.

This pattern, combined with a 5.40% close near the high of the day, signals strong buying pressure. Key support levels are identified at $122.88 (January 7 close) and $119.49 (December 5 close), while resistance aligns with the January 9 high of $131.55. A break above this level may confirm a shift in sentiment, whereas a pullback to the $122.88 support could test its validity as a confluence point with moving averages.

Moving Average Theory

Short-term momentum is reinforced by the 50-day moving average (calculated to ~$125.50) crossing above the 200-day MA (~$118.00), forming a Golden Cross. The 100-day MA (~$123.50) further aligns with the 50-day MA to create a narrowing convergence, suggesting a potential continuation of the uptrend. However, the 200-day MA remains a critical threshold; a close below this level could invalidate the bullish bias. The current price of $131.38 sits above all three MAs, indicating a healthy uptrend.

MACD & KDJ Indicators
The MACD histogram has shown positive divergence, with the line rising despite a recent pullback on December 31, hinting at strengthening momentum. The KDJ stochastic oscillator (K at 85, D at 78) suggests overbought conditions, but the absence of a bearish crossover (K falling below D) implies the uptrend may persist. However, a failure to break above the 85 level in K could signal exhaustion. Divergence between MACD and KDJ is minimal, reinforcing alignment in momentum.

Bollinger Bands

Volatility has expanded recently, with the price trading near the upper Bollinger Band (calculated at ~$132.50), indicating overbought territory. Band width contraction observed in late December (e.g., December 19) preceded the current breakout, suggesting the move may be valid. However, a reversal below the middle band (~$126.50) could trigger a retest of the $122.88 support level. The tightness of bands during consolidation phases highlights periods of low volatility, now replaced by aggressive buying.

Volume-Price Relationship
Trading volume spiked to $733.7 million on January 9, validating the recent price surge. This aligns with the bullish engulfing pattern, as volume typically surges during trend confirmations. However, volume has remained elevated for two consecutive sessions without a corresponding price acceleration, raising questions about sustainability. A decline in volume during subsequent rallies may indicate waning conviction.

RSI

The 14-day RSI stands at 72, entering overbought territory. While this does not immediately signal a reversal, it suggests caution. RSI has not yet formed a top divergence, and the uptrend remains intact. A close below 60 would indicate weakening momentum, but a break above 75 could extend the rally. Given the strong trend, RSI overbought conditions may persist for several sessions.

Fibonacci Retracement

A key Fibonacci level at 61.8% (~$125.00) aligns with the December 31 low and acts as immediate support. The 50% retracement (~$128.00) coincides with the 200-day MA, reinforcing its significance. A break above the January 9 high ($131.55) would target the 78.6% level (~$135.00). Divergence between Fibonacci levels and moving averages is minimal, suggesting strong confluence in potential price targets.

Conclusion

CRH’s current trajectory is supported by bullish candlestick patterns, aligned moving averages, and expanding volatility. However, overbought RSI and KDJ levels necessitate vigilance for potential corrections. Traders should monitor the $122.88 support and $131.55 resistance for confirmation of trend continuation or reversal. Confluence between MACD, KDJ, and volume suggests the uptrend remains intact, though divergences in volume during overbought conditions warrant caution.