EOG Resources Jumps 3.89% to $125.28 Amid Bullish Momentum and Overbought Signals

Candlestick Theory
Recent price action for EOG Resources displays a robust bullish sequence, with seven consecutive green candles culminating in a strong 3.89% gain on June 13. This session formed a long-bodied bullish candle closing near its high ($125.28), signaling sustained buying pressure. Key support has emerged near $118.50–$119.50, aligning with the June 8–9 consolidation lows. Resistance is now established at the June 13 high of $125.88, a level not tested since March 2025. The absence of reversal patterns like bearish engulfing or dojis suggests underlying strength, though extended rallies warrant monitoring for exhaustion signals.
Moving Average Theory
The 50-day MA (currently approximating $117.50) recently crossed above the 100-day MA ($115.80) and 200-day MA ($112.30), confirming a bullish long-term trend structure. Current price ($125.28) trades 6.7% above the 50-day MA, indicating strong short-term momentum. The ascending alignment of shorter MAs above longer ones (50 > 100 > 200) reinforces the uptrend. However, the widening gap between price and the 50-day MA suggests potential overextension, increasing sensitivity to pullbacks toward $120–$121 support.
MACD & KDJ Indicators
The MACD histogram shows expanding bullish momentum, with the MACD line (short-term EMA) accelerating above its signal line since late May. Concurrently, the KDJ oscillator registers overbought conditions, with the K-line (92.7) and D-line (88.5) above 80, while the J-line (101.5) exceeds 100. This divergence between MACD’s sustained momentum signal and KDJ’s extreme overbought reading warrants caution. Historically, such KDJ extremes have preceded short-term consolidations, though MACD strength may delay reversals.
Bollinger Bands
Price trades near the upper band ($126.50), reflecting high volatility and bullish momentum. Bandwidth expansion after the June 10–13 rally indicates increasing volatility. While upper-band tagging often signals strength, sustained trading outside the bands is statistically rare, increasing the probability of a reversion toward the 20-period moving average (mid-band near $121). Tightening bands preceded the early June breakout; ongoing expansion must be monitored for exhaustion.
Volume-Price Relationship
The rally from June 9–13 was validated by rising volume, peaking at 7.91 million shares on June 13—the highest daily volume since April’s volatility. This volume surge confirms buyer conviction. Notably, down days (e.g., June 4’s -1.82% drop) saw lower volume than adjacent up days, indicating limited selling pressure. Volume divergence is absent currently, supporting trend sustainability near-term.
Relative Strength Index (RSI)
The 14-day RSI reads 67.2, approaching overbought territory (>70) but not yet extreme. This reflects persistent upward momentum, though divergence exists against KDJ’s more aggressive overbought signal. RSI’s position suggests room for further upside before technical exhaustion. A break above 70 would heighten reversal risk but aligns with strong trends when coupled with supportive volume.
Fibonacci Retracement
Using the April high of $135.50 and the May low of $102.52, key Fibonacci levels emerge. The 50% retracement ($119.00) provided support during early June consolidation. The price now tests the 61.8% retracement at $126.80, a major technical resistance. Confluence exists here as this level aligns with June 13’s high. A decisive close above $126.80 could signal progression toward the 78.6% level ($131.50), while rejection may trigger profit-taking toward $120–$121 (38.2% retracement).
Synthesis
EOG Resources exhibits strong bullish momentum across multiple indicators, with volume validation, moving average alignment, and MACD confirmation supporting the uptrend. However, overbought KDJ readings, RSI near 70, and resistance at the 61.8% Fibonacci level ($126.80) raise near-term consolidation risks. Key confluence exists at $126.80–$127.00 (Bollinger upper band + Fibonacci resistance), where rejection may trigger a pullback toward $121–$122 (volume-weighted support). Absent reversal candlesticks or volume divergence, the broader trend remains constructive.