Cummins Jumps 3.66% On Bullish Technicals As Stock Tests Key 358 Resistance

Cummins (CMI) rose 3.66% in the latest session, closing at $357.25 with a high of $358.25 and low of $344.02, accompanied by elevated volume of 1.40 million shares. This strong performance forms the basis for the following technical assessment.
Candlestick Theory
The most recent candle exhibits a robust bullish marubozu pattern, closing near the session high after a 3.66% surge, indicating dominant buying pressure. This follows a short-term consolidation phase between $344–$350, with $344 emerging as critical support (tested twice in July). Resistance is evident near $358–$360, aligning with the July 22 high and psychological barrier. The bullish engulfing pattern formed on July 22 (engulfing the prior session’s decline) reinforces reversal potential. A sustained break above $358 could trigger further upside, while failure here may retest $344 support.
Moving Average Theory
The 50-day, 100-day, and 200-day moving averages portray a bullish hierarchy: the 50-day ($341) > 100-day ($330) > 200-day ($315), confirming a long-term uptrend. Price remains firmly above all three averages, with the 50-day acting as dynamic support during mid-July pullbacks. The widening gap between shorter and longer-term averages signals accelerating momentum. Notably, the golden cross (50-day above 200-day) established in Q1 2025 remains intact, supporting continued bullish bias.
MACD & KDJ Indicators
The MACD histogram shows strengthening bullish momentum, with the MACD line crossing above the signal line in early July and expanding since. This aligns with the price rebound from $344 support. Meanwhile, the KDJ oscillator exited oversold territory (sub-30 in late June) with the %K line (current: 82) crossing above %D (78), indicating improving short-term momentum. While KDJ approaches overbought territory, no bearish crossover divergence is evident. Confluence between MACD’s positive trajectory and KDJ’s upward slope suggests room for additional upside before overbought risks materialize.
Bollinger Bands
Bollinger Bands (20-day, two deviations) show moderate expansion after a contraction period in late June, reflecting resurgent volatility. Price is currently testing the upper band ($358), typically indicating overextended conditions. However, the band expansion coinciding with an upward price break implies trend continuation potential. A close above the upper band could signal strength, while rejection here may retest the midline support ($346). The bands’ directional tilt remains upward, supporting bullish sentiment.
Volume-Price Relationship
The July 22 surge occurred on 1.40 million shares – the highest volume in three weeks – validating breakout conviction. Recent up days (e.g., July 10, 16, 22) consistently show higher volume than down days, confirming accumulation. Since the mid-June low, volume has expanded during rallies and contracted during pullbacks, underscoring sustainable demand. This volume profile reinforces the significance of the $344 support and $358 resistance.
Relative Strength Index (RSI)
The 14-day RSI (current: 68) rebounded from neutral (45) in late June and approaches overbought territory. While not yet exceeding 70, its steady climb alongside price suggests no bearish divergence. The RSI’s trajectory supports bullish momentum but warrants monitoring for potential overbought signals. Given historical instances where RSI sustained >70 during strong trends (e.g., May 2025), current readings may permit further gains. A decisive break above 70 could signal strengthening momentum rather than immediate reversal risk.
Fibonacci Retracement
Applying Fibonacci to the April–July 2025 rally (low: $267, high: $360), key retracement levels are $338 (38.2%), $331 (50%), and $324 (61.8%). The July pullback precisely respected the 38.2% level ($344 low), highlighting its technical relevance. The 61.8% level aligns with the 200-day moving average, creating a strong confluence zone. The recent rebound from 38.2% suggests bullish sentiment persists, with $360 as the next psychological and technical hurdle. A breach above $360 may target the 127.2% extension at $387.
Confluence and Divergence Observations
Bullish confluence dominates: Moving averages confirm an uptrend; MACD, KDJ, and RSI reflect building momentum; volume validates price strength; and Fibonacci support held firmly at $344. The only caution arises from Bollinger Band proximity and RSI nearing overbought levels, which may precede consolidation. No significant bearish divergences are evident. Overall, technical structure suggests a high probability of testing $360 resistance. Should this level break, the next resistance emerges near $375–$380, aligned with the 161.8% Fibonacci extension and February 2025 peak. Downside risks appear limited to $344 unless volume-driven breakdown occurs.