MongoDB Rises 1.44% as Bullish Engulfing and Golden Cross Signal Uptrend

MongoDB (MDB) has risen 1.44% in the latest session, extending its two-day winning streak with a cumulative gain of 4.09%. This short-term upward momentum aligns with a potential breakout pattern on the candlestick chart, where recent closes near intraday highs suggest strong buying pressure. Key support levels are likely near the 310-315 range, while resistance is forming at 335-340. The absence of bearish reversal patterns like hanging men or shooting stars indicates the uptrend may persist, though a test of the 335 psychological level could trigger profit-taking.

Candlestick Theory

The recent price action features a bullish engulfing pattern on October 9, where the candle closed near the session high, confirming renewed optimism. Short-term traders may watch for a potential "harami" setup if the price consolidates within a narrow range, which could signal a continuation or reversal depending on volume dynamics. The 315-325 zone appears to act as a critical support cluster, reinforced by multiple false breakouts and bounces in the past month.

Moving Average Theory

The 50-day moving average (currently at ~318) has crossed above the 200-day line (~305), forming a golden cross that validates a medium-term bullish trend. The 100-day MA (~312) is converging with the 50-day, suggesting momentum is accelerating. However, the 200-day MA’s lagging nature implies the stock is still in a transitional phase between a sideways and uptrend. A break above the 335 resistance could see the 50-day MA act as a dynamic support, potentially extending the trend toward 345-350.

MACD & KDJ Indicators

The MACD histogram is expanding in the positive territory, with the MACD line (12-period) above the signal line (26-period), indicating strengthening bullish momentum. The KDJ indicator shows the K-line (~60) and D-line (~50) in overbought territory, but not excessively so. This suggests the rally remains technically healthy, though traders should monitor for a divergence between price and KDJ. The RSI (~57) is in neutral ground, avoiding the overbought threshold, which reduces immediate reversal risk.

Bollinger Bands

Volatility has widened recently, with the upper band expanding to 340 and the lower band contracting to 310. The price is currently trading near the upper band, a typical overbought condition. If the 335 level fails to hold as resistance, the bands may contract again, signaling a potential consolidation phase. Traders may use the 20-period Bollinger Band width as a volatility gauge, with narrowing bands suggesting a breakout is imminent.

Volume-Price Relationship

Volume has surged to 1.5 million shares on the latest rally, a 20% increase from the previous day, validating the price strength. However, the volume spike is not yet at multi-month highs, indicating the move remains unsustainably bullish for long-term trends. A follow-through increase in volume above 2 million shares would be required to confirm the trend’s durability.

Fibonacci Retracement

Key Fibonacci levels from the May 2025 low to the October 2025 high are at 320 (38.2%), 330 (50%), and 340 (61.8%). The current price near 331.48 aligns with the 50% retracement level, a psychological pivot point. A breakout above 340 would target the 350-360 zone, while a pullback to 320-325 could trigger renewed buying interest.

Backtest Hypothesis

The backtest strategy of selling MongoDB when both RSI and KDJ indicators show overbought conditions (RSI >70, KDJ K/D >80) reveals no actionable signals from 2022 to 2025. Historical data shows RSI never exceeded 70, and KDJ values peaked at 60.85 in December 2023. This suggests the strategy would remain dormant during this period, highlighting its inapplicability to MongoDB’s price behavior. The absence of overbought conditions underscores the stock’s tendency to trade in a range-bound or consolidative pattern rather than exhibiting classic breakout volatility.