Medtronic Jumps 3.69% On Bullish Reversal With Strong Volume Surge

Medtronic (MDT) advanced 3.69% to close at $93.22 on elevated volume during the latest session, rebounding sharply from the prior day’s sell-off and setting the stage for a multi-indicator technical assessment.
Candlestick Theory
The price action shows a robust bullish engulfing pattern on August 20, as the session’s range ($90.29–$94.44) fully eclipsed the previous day’s decline and closed near its high. This signals strong buying pressure following a test of support at $87.50. Immediate resistance is established at $94.44 (the day’s high), while secondary resistance lies near the March 2025 peak of $96.25. The $87.50 low now serves as a critical support floor, validated by the high-volume reversal.
Moving Average Theory
The 50-day moving average (approx. 90.50) maintains its position above the 100-day (approx. 89.00) and 200-day (approx. 87.50) averages, confirming a bullish medium-to-long-term trend structure. The current price trading above all three moving averages—and the 50-day’s sustained upward slope—suggests persistent upward momentum. This alignment, characterized by a "golden cross" formation, indicates a supportive trend environment.
MACD & KDJ Indicators
The MACD histogram remains positive, signaling sustained bullish momentum as the MACD line holds above its signal line. Meanwhile, the KDJ oscillator shows the %K line at approximately 82.4—indicating overbought territory—though this is not uncommon during strong trending phases. While KDJ’s overbought reading warrants caution for a near-term pullback, the MACD’s strength and lack of bearish divergence suggest underlying trend resilience.
Bollinger Bands
Bollinger Band width expanded notably during the August 20 rally, reflecting increased volatility. Price closed near the upper band (approx. 94.00), indicating short-term strength but also suggesting potential exhaustion. The expansion after the band’s contraction in mid-August implies a volatility breakout, which may support further upside if the price holds above the 20-day moving average (approx. 90.80). A mean-reversion pullback toward the 20-day average could develop before renewed strength.
Volume-Price Relationship
Volume surged 34% to 12.95 million shares during the August 20 advance, decisively validating the bullish reversal. This contrasts with the high-volume sell-off (19.58 million shares) on August 19, indicating distribution followed by rapid accumulation at support. The volume signature confirms buyer commitment to the rebound. Sustainability of the uptrend is reinforced by consistently higher volume on up days versus pullbacks throughout the dataset.
Relative Strength Index (RSI)
The 14-day RSI (approx. 59.9) resides in neutral territory, recovering from near-oversold levels following the August 19 decline but not yet overbought (>70). This positioning allows room for further upside without immediate exhaustion signals. The absence of bearish divergence—wherein price makes higher highs while RSI trends lower—supports the current advance’s durability.
Fibonacci Retracement
Applying Fibonacci levels to the major swing from the January 2025 low ($83.11) to the March 2025 high ($96.25) reveals significant confluences. The August 19 low ($87.50) slightly breached the 61.8% retracement level ($88.13), forming a bear trap before the sharp reversal. The subsequent close above the 23.6% level ($93.15) validates this zone as support and opens a path toward the 0% retracement at $96.25. These levels align technically, with $93.15 now acting as near-term support.
Confluence and Divergences
Confluence is evident across indicators: the bullish engulfing candle at Fibonacci support ($87.50 near 61.8%), elevated volume on the rebound, moving average alignment, and MACD momentum collectively reinforce a constructive outlook. The KDJ’s overbought reading and Bollinger Band proximity offer minor counterpoints but lack corroborating bearish divergences. Primary risk stems from a retest of $93.15 support; a sustained breach above $94.44 may catalyze momentum toward $96.25.