Ingersoll Rand Surges 3.74% as Bullish Engulfing Pattern and Technical Indicators Signal Uptrend Continuation Amid Key Fibonacci Resistance

Candlestick Theory
Ingersoll Rand (IR) recently closed with a 3.74% bullish candle, forming a potential bullish engulfing pattern following a -2.52% bearish session. Key support levels emerge at $79.12 (mid-December 2025 low) and $76.01 (late October 2025 trough), while resistance clusters at $83.44 (early December 2025 high) and $86.13 (October 2025 peak). The recent rally suggests a short-term bullish bias, though a break below $79.12 may invalidate this narrative.

Moving Average Theory

The 50-day MA (approx. $81.50) currently sits above the 100-day MA ($79.80) and 200-day MA ($77.30), confirming an uptrend. However, the 100-day MA is approaching the 200-day MA, hinting at potential flattening in the long-term trend. Price action above the 50-day MA since early January 2026 reinforces near-term momentum, but a close below $81.00 could signal weakening trend strength.

MACD & KDJ Indicators

The MACD line (12-day EMA minus 26-day EMA) has crossed above the signal line, with a positive histogram, indicating strengthening momentum.

The KDJ Stochastic oscillator shows %K at 65 and %D at 58, suggesting a neutral bias but no immediate overbought/oversold conditions. A divergence between rising %K and declining price in late December 2025 may have warned of a prior correction.

Bollinger Bands

Volatility has expanded recently, with the 20-day SMA at $81.20 and bands widening to $84.50 (upper) and $77.90 (lower). Price near the upper band ($84.37) suggests overbought conditions, though the 20-day SMA is ascending, supporting further gains. A contraction in band width during mid-December 2025 preceded the recent breakout, aligning with increased volume.

Volume-Price Relationship

The recent 3.74% rally was accompanied by elevated volume (2.43M shares), validating the move. However, volume has declined in the past three sessions after the breakout, which may weaken sustainability. A sustained increase in volume above the 3M average would strengthen the case for continuation.

Relative Strength Index (RSI)

The 14-day RSI stands at 58, indicating a neutral zone. While not overbought (>70) or oversold (<30), the RSI has shown divergence in mid-December 2025 (falling while price rose), a cautionary sign. A push above 65 may precede a test of the $86.13 resistance.
Fibonacci Retracement
Key retracement levels from the February 2025 peak ($92.55) to the March 2025 trough ($76.95) include 38.2% at $84.00 and 50% at $84.75. These align with recent resistance at $84.37, suggesting potential consolidation. A break above $84.75 could target the 61.8% level at $85.50, while a drop below $84.00 may retest $81.20 (38.2% retracement from a different swing).

Confluence between the 50-day MA, Bollinger upper band, and Fibonacci 38.2% level at $84.00–$84.50 suggests a high-probability zone for near-term action. Divergences in KDJ and RSI during late December 2025 highlight caution, but strong volume on the recent rally supports bullish bias. A break above $84.75 with expanding volume may confirm a trend continuation, while a close below $81.00 would trigger a reevaluation of the setup.