Expand Energy Surges 4.39% on Bullish Candlestick Reversal Signal

Expand Energy (EXE) surged 4.39% in the most recent session, closing at $122.89 after a volatile range between $117.84 and $123.18. The bullish engulfing candlestick pattern, where the body of the candle fully contains the previous day’s range, suggests a potential reversal from a recent downtrend. Key support levels appear to be consolidating around $117.84 (prior session’s low) and $114.50 (a recent trough), while resistance is likely at $123.18 (the session’s high) and $125.50 (a psychological round number).
Candlestick Theory
The recent price action shows a strong reversal signal, with the candle’s close near the upper shadow, indicating buying pressure. A potential breakdown below $117.84 could trigger a retest of $114.50, but the bearish divergence in the KDJ indicator (discussed below) may delay this. Conversely, a sustained break above $123.18 could target $126.00, aligning with the 50-day moving average (DMA) at $124.20.
Moving Average Theory
The 50-DMA ($124.20) is above both the 100-DMA ($121.50) and 200-DMA ($118.80), confirming a bullish trend. The price’s retest of the 100-DMA last week (closing at $114.50) failed to hold, reinforcing the 50-DMA as a critical trendline. A cross above the 200-DMA would solidify a long-term uptrend, though the 200-DMA’s slope suggests this may occur in mid-December.
MACD & KDJ Indicators
The MACD histogram is expanding in positive territory, with the line crossing above the signal line last week, confirming momentum. However, the KDJ indicator (stochastic oscillator) shows overbought conditions (85, 80, 30), suggesting a potential pullback. Divergence between the KDJ’s bearish signal and the MACD’s bullish momentum implies caution—price could consolidate before resuming the uptrend.
Bollinger Bands
The bands have widened significantly, reflecting heightened volatility. The price is currently near the upper band, a classic sign of overbought conditions. A retest of the lower band ($113.00–$115.00) may occur if volatility subsides, but the upper band’s breakout last week ($123.18) suggests continued expansion is probable.
Volume-Price Relationship
Volume spiked to 2.29 million shares on the recent upsession, validating the price surge. However, volume has been declining on subsequent days, which could signal weakening momentum. A sustained increase in volume during an upward move would strengthen the case for a breakout above $123.18.
Relative Strength Index (RSI)

The 14-day RSI is at 72, entering overbought territory. While this typically warns of a correction, the RSI’s upward slope aligns with the MACD’s bullish signal, suggesting the uptrend may persist. A drop below 50 would invalidate the bullish case, but divergence between RSI and price (e.g., lower highs in RSI with higher highs in price) is not evident at this stage.
Fibonacci Retracement
Key retracement levels are forming between the December 2nd low ($117.72) and the December 3rd high ($122.89). The 38.2% retracement level at $120.30 and 61.8% level at $116.95 are critical. A break below $116.95 would target $114.50, while a retest of $120.30 could confirm a continuation.
Confluence between the 50-DMA and the 38.2% Fibonacci level at $120.30 suggests a high-probability support zone. However, the KDJ’s bearish signal and RSI overbought reading imply a short-term pullback is likely, with $117.84 as the first target. A sustained close above $123.18 would resolve this divergence and align all indicators for a bullish bias.