Lennox Surges 3.15% to $620 as Technicals Signal Bullish Rebound

Lennox (LII) rose 3.15% in the most recent session to close at $619.97, marking a notable recovery from recent fluctuations. Below is a technical analysis based on the provided historical price data.
Candlestick Theory
Lennox exhibits a bullish reversal pattern on the last trading day (2025-07-22), where a long green candle closed near the session high ($620.05) after briefly testing support at $598.25. This follows a bearish candle on 2025-07-21 that failed to sustain below $600.71, reinforcing the psychological $600 support level. Resistance is established at $620–$625, a zone tested multiple times in July 2025 (e.g., highs of $624.10 on 2025-07-10 and $620.11 on 2025-07-11). The $587.93 low on 2025-07-16 serves as critical near-term support.
Moving Average Theory
The 50-day, 100-day, and 200-day moving averages (MAs) are aligned bullishly (50 > 100 > 200), confirming an uptrend. Recent prices remain firmly above all three MAs, with the 50-day MA (approx. $595) acting as dynamic support during pullbacks. A minor convergence occurred near $600 on 2025-07-21, where the price rebounded precisely from the 100-day MA, underscoring its relevance. The ascending MA stack suggests sustained upward momentum.
MACD & KDJ Indicators
The MACD histogram shows improving bullish momentum, recovering from a brief dip on 2025-07-21. A potential bullish crossover may develop if the recovery persists. However, KDJ readings present a divergence: %K surged to overbought territory (98) after the 3.15% rally, while %D lags at 66, reflecting short-term overheating. This KDJ overbought signal (coupled with proximity to resistance) may precede consolidation. MACD-KDJ divergence warrants caution against aggressive long entries.
Bollinger Bands
Lennox trades near the upper Bollinger Band (approx. $622), indicating elevated volatility and bullish sentiment. The bands expanded following the 07-16 dip to $587.93 and subsequent rebound, signaling increased directional momentum. Price acceptance above $620 would reinforce the breakout thesis, while failure could trigger a retest of the 20-day midline ($605). Volume expansion during the rally (598,539 shares vs. 364,547 prior) supports band-breakout validity.
Volume-Price Relationship
Volume patterns validate key price movements. The 07-16 sell-off to $587.93 occurred on high volume (460,476 shares), suggesting capitulation. Subsequent rallies (e.g., 07-17 and 07-22) saw volume surge, confirming accumulation. Notably, the 3.15% surge on 07-22 recorded the highest volume in six sessions, strengthening the breakout’s credibility. Declining volume during the 07-18–07-21 consolidation hinted at selling exhaustion, setting the stage for the rebound.
Relative Strength Index (RSI)
The 14-day RSI reads 57.7, residing neutrally between overbought (>70) and oversold (<30) thresholds. While RSI recovered from a near-oversold dip during the 07-16 decline, it lacks extreme readings, implying balanced momentum. The indicator’s midpoint rebound aligns with price recovery but diverges from KDJ’s overbought signal, suggesting Lennox retains upside room before becoming technically extended. RSI’s neutral stance may support gradual gains if volume persists.
Fibonacci Retracement
Using the swing low of $508.76 (2025-04-23) and high of $624.10 (2025-07-10), key retracement levels emerge: 38.2% ($580.04) and 23.6% ($596.88). The 07-16 low ($587.93) respected the 38.2% level, catalyzing a rebound. The recent rally now approaches the prior peak (100% extension at $624.10). Confluence exists between the 620–625 price resistance and the 161.8% Fibonacci extension ($639), creating a critical technical test. A decisive close above $625 would open room toward $640.
Confluence and Divergence
Strong confluence appears at $620–625, where candlestick resistance, the upper Bollinger Band, and Fibonacci extensions converge. Multiple indicators (volume, MAs, and MACD) support bullish momentum, but KDJ’s overbought warning and RSI neutrality suggest potential near-term friction. Primary divergence lies between KDJ’s overbought signal and MACD/RSI’s neutral-to-bullish stance, implying the uptrend may pause rather than reverse. Monitoring price action around $625 remains critical.