EOG Resources Jumps 3.63% as Technicals Signal Bullish Reversal Above $120

EOG Resources demonstrated notable strength in its latest trading session, advancing 3.63% to close at $123.95 on elevated volume. This rally follows a sharp 2.87% decline the prior day, reflecting heightened volatility as the price reclaimed the $120–$125 consolidation zone. Below is a technical assessment using standardized frameworks.
Candlestick Theory
Recent sessions highlight a bullish reversal pattern near critical support. The 2025-07-07 candle established a local bottom at $118.07, validated by the subsequent long green body closing near session highs on 2025-07-08. This indicates robust buying interest near the $118–$119 zone, now serving as immediate support. Resistance is prominent at $125.08 (2025-07-08 high), coinciding with the June swing high of $125.32. A decisive close above $125 could signal continuation, while failure risks retesting the psychological $115–$116 area defended in May and June.
Moving Average Theory
The 50-day MA ($120.80) crossed above the 100-day MA ($119.50) in late June, reinforcing a bullish intermediate structure. Both averages now slope upward, supporting the recovery from May’s low of $107.02. Price trades above the 50/100/200-day MAs, confirming a primary uptrend. The 200-day MA ($114.50) offers robust long-term support, rising steadily since Q1 2025. Recent price stability above the 50-day MA ($120.80) suggests underlying strength, but sustained momentum requires holding above this dynamic floor.
MACD & KDJ Indicators
MACD (12,26,9) shows a bullish crossover emerging in late June, with the histogram turning positive as momentum improved. However, the signal line remains flat near zero, implying consolidation rather than aggressive trend acceleration. KDJ (9,3,3) echoes this: %K (62) and %D (58) are rising but not yet overbought (>80). The recent %J spike to 70 indicates improving upside volatility. Confluence exists in neutral-bullish momentum alignment, though neither oscillator flags immediate overextension.
Bollinger Bands
Bands expanded sharply during the June selloff ($127.81 high to $114.33 low), reflecting heightened volatility. Recent contraction places the 20-day band width near 6-month lows, signaling a coiled spring. Price trades near the upper band ($124.50), typically resistance in rangebound markets. A confirmed breakout above $125 could trigger band expansion and trend resumption. The middle band ($120) aligns with the 50-day MA, strengthening its support validity.
Volume-Price Relationship
The 2025-07-08 advance occurred on 3.75M shares, significantly above the 30-day average, validating buyer conviction. Notable distribution appeared on down days (e.g., 8.83M shares on 2025-06-20 during a +1.24% gain), suggesting absorption by larger players. Volume surges accompany directional breaks: the May trough saw elevated turnover ($107.02 low on heavy volume), while June’s recovery lacked equivalent volume confirmation, warranting caution. Recent volume-supported gains improve sustainability odds.
Relative Strength Index (RSI)
The 14-day RSI (55.8) rebounded from near-oversold territory (35.6 in May) but remains neutral. While RSI briefly touched 70 in early April – triggering a significant pullback – it now lacks extreme readings. This neutral midpoint allows room for additional upside before overbought risks emerge. Traders should note that RSI divergence preceded April’s correction; currently, no such divergence exists with price action.
Fibonacci Retracement
Applying Fib levels to the February–May swing (high: $135.87, low: $107.02) shows critical confluences. The 61.8% retracement ($124.85) capped rallies in early June and coincides with the 2025-07-08 high ($125.08). This level is pivotal resistance. The 50% level ($121.44) now underpinned the late-June base. Traders may monitor the 78.6% zone ($127.60) as next resistance if $125 breaks, while the 38.2% level ($118.04) reinforces the $118 support identified via candlesticks.
Confluence and Divergence Summary
Confluence reinforces $118–$119 as critical support (Fib 38.2%, candlestick low, volume spike). Similarly, $124.85–$125 (61.8% Fib, Bollinger upper band, June high) is a resistance cluster. Bullish alignment includes MACD/KDJ momentum recovery, volume-backed rallies, and moving average support. No material divergences exist currently, though the RSI’s neutrality against Bollinger’s upper-edge proximity suggests near-term consolidation may precede the next decisive move. The weight of evidence leans cautiously bullish above $120.80 (50-day MA), but clearance of $125 remains essential for trend resumption.