Eversource Gains 3.05% as Bullish Reversal and Key Support Levels Fuel Short-Term Optimism

Eversource (ES) closed its most recent session with a 3.05% increase to $67.62, marking a notable bullish reversal following a volatile pullback from a prior high of $74.54 in late 2025. This sharp upward move, coupled with elevated trading volume ($181.36 million), suggests a potential short-term bottoming process. The price action around key support levels (e.g., $65.50–$67.70) indicates a consolidation phase, with the recent close above the 50-day and 100-day moving averages (calculated from the dataset) reinforcing a medium-term bullish bias. However, the 200-day moving average remains a critical hurdle; a sustained break above this threshold would validate a broader uptrend.

Candlestick Theory

The recent bullish candlestick on 2026-01-08, characterized by a long upper shadow and a strong close near the high, suggests aggressive buying pressure following a prior downtrend. Key support levels are evident at $65.50–$65.62 (prior lows from 2026-01-07 and 2025-12-31), while resistance clusters emerge at $67.70–$68.19 (2026-01-05 and 2025-12-02). A bullish engulfing pattern forming at the $65.50 support level implies a potential continuation of the upward move, though a breakdown below $65.50 would invalidate this scenario.

Moving Average Theory

The 50-day MA (approx. $66.30–$67.00 based on the dataset) and 100-day MA ($65.50–$66.50) intersect near the current price, indicating a potential trend consolidation phase.

The 200-day MA (~$64.00–$65.00) remains below the 50-day MA, suggesting the broader trend is still bullish but lacks conviction. A crossover above the 200-day MA would signal a stronger uptrend, while a retest of the 50-day MA could confirm short-term momentum.

MACD & KDJ Indicators

The MACD histogram is transitioning from negative to positive territory, with the MACD line crossing above the signal line—a potential buy signal. The KDJ stochastic oscillator, however, is in overbought territory (K-line above 80), suggesting caution. Divergence between the KDJ and price action (e.g., higher highs in price but lower highs in the KDJ) may indicate an impending pullback, though the MACD’s bullish crossover provides conflicting signals.

Bollinger Bands

Volatility has expanded recently, with the upper band at ~$68.50 and lower band at ~$65.00. The price’s proximity to the upper band ($68.19 on 2026-01-05) suggests overbought conditions, increasing the likelihood of a retracement. A contraction in band width is expected if volatility subsides, potentially leading to a breakout or breakdown depending on volume dynamics.

Volume-Price Relationship

The recent 3.05% rally coincided with above-average volume (2.69 million shares), validating the move’s strength. However, volume has been inconsistent during the consolidation phase (e.g., low-volume closes on 2025-12-30 and 2025-12-26), which may weaken the sustainability of the upward bias. A surge in volume during a break above $68.50 would be necessary to confirm a bullish breakout.

Relative Strength Index (RSI)

The 14-period RSI is approaching overbought territory (~68–70), indicating short-term momentum exhaustion. While this does not necessarily signal an immediate reversal, it cautions against overextending long positions. A drop below 50 would confirm a bearish correction, aligning with potential Fibonacci retracement levels.

Fibonacci Retracement

Key Fibonacci levels from the 2025-11-19 low ($65.26) to the 2025-11-18 high ($74.54) include 61.8% at $69.70 and 78.6% at $73.00. The current price near $67.62 aligns with the 38.2% retracement level, suggesting a potential short-term target for continuation. A breakdown below the 50% level ($69.90) would shift focus to deeper retracements at $67.00–$65.50.

Confluence and Divergences

Confluence between the bullish MACD crossover and the 50-day MA support strengthens the case for a continuation. However, the overbought RSI and KDJ divergence highlight a risk of a near-term pullback. The volume surge during the 3.05% rally supports the bullish case but must be confirmed by subsequent price action above $68.50.