DuPont Rallies 4.20% On Technical Breakout With Bullish Indicators

DuPont de Nemours (DD) rallied 4.20% in the latest session to close at $71.47, breaking above recent resistance on elevated volume. The following technical analysis evaluates key indicators to assess the sustainability of this move.
Candlestick Theory
Recent price action reveals significant patterns, including a bullish engulfing candle on June 24th followed by consolidation. The current session formed a strong white candle closing near the high ($72.08), breaking above the $69.50 resistance level that capped prices through late June. Support now emerges near $68.45 (prior swing low) and $66.80 (April-June base), while resistance aligns with the $73.00-$74.00 zone from March peaks.
Moving Average Theory
The 50-day moving average (currently near $69.80) crossed bullishly above the 100-day ($70.50) in mid-June, confirming strengthening intermediate momentum. However, both remain below the 200-day MA ($77.20), indicating unresolved long-term bearish pressure. The latest close above all short-term MAs suggests near-term bullish bias, though a sustained move above the 200-day MA is needed for trend reversal confirmation.
MACD & KDJ Indicators
The MACD histogram turned positive in late June as the signal line crossed upward from oversold territory, supporting near-term bullish momentum. Meanwhile, KDJ lines show a bullish crossover with %K (82) above %D (75), though both approach overbought levels. Minor divergence appears as MACD strength outpaces the moderate KDJ readings, suggesting momentum could be front-running price.
Bollinger Bands
Bollinger Band width contracted notably through June, indicating reduced volatility before the recent expansion on July 1st’s breakout. Price closed above the upper band ($70.20), typically signaling overextended conditions. This expansion phase suggests intensified directional momentum but increases near-term pullback probability toward the $70.00-$70.50 middle band support.
Volume-Price Relationship
Volume surged 55% above average on the breakout day—the highest since early June—validating buyer conviction. This volume spike coincides with the resistance breach, confirming accumulation. Recent accumulation/distribution trends show steady inflows since mid-June, aligning with the price recovery off $66.18 lows. Sustained volume >2M shares would validate continuation.
Relative Strength Index (RSI)
The 14-day RSI (currently 65) climbed from oversold levels below 30 in April but remains shy of overbought territory. While RSI hasn’t breached 70 since March, its upward trajectory supports bullish momentum. Caution is warranted as RSI diverged negatively in June—making lower highs while prices consolidated—though this recently resolved with the breakout.
Fibonacci Retracement
Applying Fibonacci levels to the March high ($89.54) and April low ($57.66) reveals critical thresholds. The 38.2% retracement ($69.80) was reclaimed recently, while the 50% level ($73.60) aligns with March-June resistance. The latest breakout targets the 61.8% retracement ($77.40), converging with the psychological $77-$78 resistance zone and the 200-day MA.
Confluence and Divergence Summary
Confluent bullish signals appear through volume-confirmed resistance breaks, moving average crossovers, and aligned MACD/KDJ momentum. Divergences exist: RSI’s earlier negative signal resolved bullishly, yet Bollinger Band expansion hints at overextension. The $73.60 level converges as critical resistance, blending Fibonacci 50% retracement with prior price structure. Probabilistically, the breakout appears sustainable near-term provided support at $69.80-$70.50 holds.