GE HealthCare Rises 9.16% in Four-Day Rally on Strong Technical Momentum

GE HealthCare (GEHC) advanced 3.21% to close at $78.16 in the latest trading session on September 8, 2025, marking the fourth consecutive day of gains and bringing the cumulative increase to 9.16% over this period. This strong upward momentum, accompanied by above-average volume of 6.23 million shares, suggests robust buying interest in the stock.
Candlestick Theory
The four-day bullish candlestick pattern, culminating in a long green candle on September 8 that closed near its high of $78.16, signals strong upward momentum. This pattern occurred after a base near $71.60 and broke through resistance at $75.75 (September 5 high), suggesting potential continuation. Immediate support has formed at $75.00, with resistance now at the session's high of $78.43. A close above $78.50 would confirm bullish conviction.
Moving Average Theory
GEHC trades above all key moving averages, confirming a bullish trend structure. The 50-day moving average (approx. $74.50) crossed above the 100-day (approx. $73.00) in late July and remains above the 200-day moving average (approx. $70.00), reflecting strengthening intermediate-term momentum. The ascending 50-day MA may provide dynamic support during pullbacks.
MACD & KDJ Indicators
The MACD histogram shows bullish expansion since September 3, with the MACD line (12-day EMA minus 26-day EMA) firmly above its signal line. Concurrently, the KDJ oscillator exhibits overbought conditions with its K-line near 95 and D-line near 85, suggesting near-term exhaustion risk. Notably, the MACD's bullish crossover divergence from mid-August supports further upside potential despite KDJ warnings.
Bollinger Bands
Price action touched the upper Bollinger Band ($78.40) on September 8, typically indicating overbought conditions. The bands have been expanding since early September, reflecting increasing volatility and strong directional movement. This breakout suggests potential continuation, though a reversion toward the middle band (20-day SMA, approx. $75.20) could occur if profit-taking emerges.
Volume-Price Relationship
The four-day rally was validated by steadily rising volume, with September 8's volume (6.23 million shares) being the highest since July 30. Importantly, accumulation days (price up, volume up) outnumbered distribution during this surge. Prior pullbacks (e.g., August 29 - September 2) saw diminishing volume, confirming a lack of sustained selling pressure.
Relative Strength Index (RSI)
The 14-day RSI reached 78 on September 8, entering overbought territory but without bearish divergence. While this warns of short-term consolidation, the indicator remains in a structural uptrend since the RSI bottomed near 40 in May. Historical overbought conditions during this uptrend have resolved through sideways consolidation rather than sharp declines.
Fibonacci Retracement
Applying Fibonacci retracement to the swing from the April 21 low ($60.48) to the September 8 high ($78.43) identifies key support levels at $74.19 (23.6%), $71.57 (38.2%), and $69.46 (50%). The 23.6% level aligns with the September 8 low ($74.99) and moving averages, creating a strong confluence support zone near $75.00 that may attract buyers during retracements.