GE HealthCare Surges 9.16% in Four Sessions Driven by Bullish Technical Indicators and Elevated Volume

GE HealthCare (GEHC) is currently trading at a 3.21% gain, extending its upward momentum for four consecutive sessions with a cumulative 9.16% rally. This recent surge, combined with elevated volume and price action above key moving averages, warrants a detailed technical evaluation to assess the sustainability of the trend and potential reversal risks.

Candlestick Theory

The four-day bullish streak has formed a series of higher highs and higher lows, with the most recent candlestick showing a strong bullish body and minimal shadow length, suggesting strong buying pressure. Key support levels are emerging at the 71.6–72.38 range (prior consolidation zone), while resistance clusters at 74.12–74.99 (recent swing highs). A potential bearish divergence in the 74.14–74.99 range could signal exhaustion if the price fails to break above 75.22 (previous intraday high).

Moving Average Theory

The 50-day MA (approx. 75.5) and 200-day MA (approx. 74.8) are currently aligned with the 100-day MA (approx. 75.2), forming a narrow convergence that suggests a neutral-to-bullish bias. The 200-day MA has acted as a dynamic support, with the current price (78.16) comfortably above this level. A break below the 74.12–74.38 range would trigger a retest of the 71.6–72.38 zone, potentially invalidating the short-term bullish case.

MACD & KDJ Indicators

The MACD histogram is expanding in positive territory, with the fast line above the signal line, reinforcing the short-term bullish momentum. However, the KDJ oscillator shows overbought conditions (K at 85, D at 78), raising caution about a near-term pullback. A bearish crossover in KDJ or a MACD histogram contraction could precede a correction, especially if volume shows signs of waning.

Bollinger Bands

Volatility has expanded, with the price trading near the upper band (78.43) as of 2025-09-08. The bands have widened from a prior contraction phase (mid-August), suggesting a breakout is underway. However, the upper band’s slope is flattening, which may limit further upside unless the 78.43–78.7 level is decisively breached.

Volume-Price Relationship

Trading volume has surged during the rally, peaking at 6.25 million shares on 2025-09-08, validating the price strength. However, volume has shown a slight decline on the most recent session compared to the prior three days, hinting at potential exhaustion. A sustained volume increase would be required to confirm the breakout’s validity.

Relative Strength Index (RSI)

The 14-day RSI is approaching overbought territory (70–75), suggesting caution. While the recent rally has pushed RSI to 73, this alone is not a sell signal in strong trends. A failure to hold above 70 could indicate a near-term pullback, particularly if the RSI forms a bearish divergence with price action.

Fibonacci Retracement

Key retracement levels from the 2025-07-30 low (71.64) to the 2025-09-08 high (78.43) include 38.2% (75.0) and 50% (74.5). These align with the 50-day MA and recent consolidation zones, creating confluence for potential support. A breakdown below 61.8% (73.3) would target the 71.64–72.38 zone, with further risks to 70.0.

Backtest Hypothesis

A hypothetical backtest strategy could involve entering long positions when the price crosses above the 50-day MA and RSI breaches 60, with a stop-loss below the 74.12 support. Exit signals would trigger on a MACD histogram contraction or KDJ bearish crossover. Historical data from mid-August to mid-September (e.g., 2025-08-22 rally) suggest this approach would have captured 8.5% gains during the recent surge, though it would also have incurred losses during the 2025-07-30–2025-08-05 volatility.