Haleon Surges 3.26% on Bullish Engulfing Pattern as Golden Cross and Fibonacci Confluence Signal Short-Term Uptrend

Haleon (HLN) closed the most recent session with a 3.26% increase to $9.83, signaling a notable short-term bullish reversal after a period of consolidation. The price action over the preceding weeks reveals a mix of volatile swings, with recent candlestick patterns suggesting potential indecision followed by a strong upward thrust. A bullish engulfing pattern emerged on December 15, 2025, as the price surged above a prior bearish candle, indicating a possible shift in sentiment. Key support levels appear to congregate around $9.40–$9.50 (tested on December 9–12), while resistance is evident near $9.90–$10.00 (prior highs in late November 2025).
Candlestick Theory
The recent 3.26% rally on December 15 forms a bullish engulfing pattern, confirming a reversal from prior bearish momentum. The preceding days show a series of smaller bearish and bullish candles within a tight range, suggesting traders are testing support/resistance levels. A potential "piercing line" pattern on December 11–12 (a small bearish candle followed by a larger bullish candle closing above midrange) adds to the case for a short-term bottom. Critical support at $9.50 (December 12 close) and resistance at $9.90 (November 13 high) should be monitored for further directional bias.
Moving Average Theory
Short-term momentum is reinforced by the 50-day moving average (approximately $9.60) crossing above the 200-day MA ($9.55), forming a "golden cross." The 100-day MA ($9.65) aligns with the 50-day, suggesting a medium-term uptrend. However, the 200-day MA remains a critical psychological level; if the price retests and holds above $9.55, the bullish bias strengthens. A breakdown below the 100-day MA would likely negate recent gains and reintroduce bearish pressure.
MACD & KDJ Indicators
The MACD histogram has turned positive, with the MACD line ($0.12) crossing above the signal line ($0.08), signaling a potential continuation of the recent rally. However, the KDJ stochastic oscillator shows a bearish divergence: %K ($85) is declining while the price rises, hinting at waning momentum. This divergence suggests caution, as overbought conditions (RSI near 70) may precede a pullback. A close below the 20-level for %D would indicate a return to oversold territory, potentially setting up a rebound.
Bollinger Bands
Volatility has expanded recently, with the upper band at $9.95 and the lower band at $9.40. The price closed near the upper band on December 15, suggesting overbought conditions. A retest of the lower band could trigger a mean reversion trade, but sustained breaks above the upper band would signal a breakout from the consolidation range. The narrowing bands observed in late November (tight range between $9.60–$9.70) preceded the recent move, indicating a potential continuation of the upward trend.
Volume-Price Relationship
The recent 3.26% gain was accompanied by a surge in volume (7.88 million shares), validating the strength of the rally. However, volume has been inconsistent over the past two weeks, with mixed readings on December 10–12 suggesting a lack of conviction. A sustained increase in volume during upmoves would confirm the trend’s sustainability, while declining volume during rallies may indicate exhaustion. The December 15 surge aligns with a key breakout, enhancing its credibility.
Relative Strength Index (RSI)
The 14-day RSI stands at ~68, nearing overbought territory (70 threshold). This suggests a potential pullback is likely, though the price could extend the rally if buyers remain aggressive. A close below 50 would signal weakening momentum, while a rebound above 60 would reinforce the bullish case. The RSI’s recent divergence with price (rising RSI vs. declining %K in KDJ) highlights conflicting signals between momentum and oscillator indicators.
Fibonacci Retracement
Key Fibonacci levels derived from the November 2025 low ($9.30) to the April 2025 high ($10.43) include 38.2% ($9.78), 50% ($9.86), and 61.8% ($9.94). The current price near $9.83 aligns with the 38.2% retracement level, suggesting a possible consolidation zone. A break above $9.86 would target the 50% and 61.8% levels, reinforcing the bullish case. Conversely, a drop below $9.78 could trigger a retest of the 23.6% level ($9.70).
Confluence and Divergences
The most compelling confluence occurs at $9.50–$9.55, where the 200-day MA, key Fibonacci support (38.2%), and recent candlestick support converge. A break below this level would invalidate the bullish case and trigger a bearish KDJ signal. Conversely, a close above $9.90 would align with the 61.8% Fibonacci level and MACD strength. Divergences between the KDJ and RSI suggest caution, as overbought conditions may precede a correction despite the recent MACD bullish crossover.

The recent price action for Haleon reflects a strong short-term bullish reversal, supported by candlestick patterns and moving average alignment. However, overbought conditions and oscillator divergences caution against assuming the trend will persist unchallenged. Traders should monitor the $9.50–$9.55 confluence zone for trend validation or reversal, while the $9.90–$9.95 resistance cluster will test the sustainability of the rally. A breakout above $9.90 would suggest a higher probability of continued gains, whereas a failure to hold $9.55 could lead to a deeper correction. The volume surge on the December 15 rally adds credibility, but inconsistent volume in prior sessions underscores the need for confirmation before committing to long positions.