Diamondback Energy Jumps 4.23% On Bullish Technical Breakout

Diamondback Energy (FANG) closed at $143.76 on July 8, 2025, gaining 4.23% on robust volume of 2.48 million shares. This strong bullish candle follows a period of consolidation, suggesting renewed investor interest in the energy sector. Below is a technical analysis synthesizing multiple indicators for forward-looking context.
Candlestick Theory
The most recent session formed a decisive bullish engulfing pattern, with the July 8 candle completely overshadowing the prior day's bearish body. This reversal signal occurred near the $137.50 support level—tested three times in the past month—indicating solid buying interest at this price floor. Resistance is now established at $145.24 (July 8 high), with a decisive break above potentially targeting the June double-top near $151. The long lower wick at $137.345 during the July 7 session further reinforces near-term support.
Moving Average Theory
Currently, the 50-day SMA ($138.20) maintains an upward trajectory above the 100-day SMA ($132.60), while both hold above the rising 200-day SMA ($120.80). This configuration signals a sustained intermediate-term uptrend. Of note, the July 8 close above the 50-day SMA (which had briefly turned resistance earlier in July) confirms bullish momentum resumption. The convergence of all three MAs in a bullish sequence reinforces underlying strength.
MACD & KDJ Indicators
The MACD histogram crossed into positive territory on July 8 following a bullish signal line crossover. This shift from negative momentum aligns with the KDJ indicator, where the %K line (78) recently crossed above the %D line (72) after exiting oversold territory. While KDJ's proximity to overbought levels warrants monitoring, the synchronous upward momentum in both oscillators supports near-term bullish conviction.
Bollinger Bands
July's price action has compressed within tightening bands (July 1–7 range: $135–$143), signaling reduced volatility before the July 8 expansion. The breakout above the upper band ($142) coincided with the highest volume in two weeks, indicating strong directional conviction. With bandwidth expanding from recent lows, volatility-driven upside appears likely. Near-term support shifts to the middle band at $140.30.
Volume-Price Relationship
Volume surged 45% during the July 8 rally, confirming buyer commitment absent in prior rebounds. This volume spike validates the bullish engulfing pattern. Recent consolidation phases have featured diminishing volume (e.g., July 3 volume down 36% from June 30), indicating weak selling pressure during pullbacks. The alignment of expanding volume with directional moves reinforces trend sustainability.
Relative Strength Index (RSI)
The 14-day RSI (62) rebounded sharply from near-neutral levels, avoiding oversold conditions during last week's consolidation. While approaching the overbought threshold of 70, current readings show no divergence with price action. Traders should note that RSI remains below extreme territory, leaving room for additional upside before warning signals materialize.
Fibonacci Retracement
Using the April swing high of $193.77 and May low of $119.25, key retracement levels emerge: 23.6% ($141.80), 38.2% ($150.60), and 50% ($156.50). The July 8 close above the 23.6% level marks a significant technical achievement, turning prior resistance into support. The next resistance aligns with the 38.2% retracement at $150.60, matching the June high cluster. This confluence area presents a logical profit-taking zone.
Confluence and Divergence Observations
Strong confluence exists between the Fibonacci 23.6% level ($141.80), psychological $140 support, and the 50-day SMA—all validated by the volume-backed bullish engulfing pattern. The simultaneous bullish crossovers in MACD and KDJ further reinforce momentum. No material divergences were observed among oscillators, though Bollinger Band expansion against historically elevated RSI may foreshorten upside if buying pressure wanes. Probabilistically, the weight of evidence suggests continued upside toward $150.60, contingent on holding the $137.50–$140 support confluence.