MongoDB Shares Jump 3.59% on Bullish Engulfing and Golden Cross Confirmation

Candlestick Theory

MongoDB (MDB) exhibited a 3.59% rally on 2025-10-01, forming a bullish engulfing pattern as the closing price surged above the prior session’s range. Key support levels can be identified at $309.92 (2025-09-30 low) and $295.70 (2025-08-27 low), while resistance aligns with the 2025-09-15 high of $344.30. A potential bearish reversal signal emerged on 2025-09-17 with a shooting star pattern ($329.01 high to $315.38 close), suggesting short-term exhaustion after the prior week’s 7.58% spike on 2025-08-28.

Moving Average Theory

The 50-day MA (calculated from 2025-08-01 to 2025-10-01) sits at approximately $298.50, while the 200-day MA (2024-10-01 to 2025-10-01) is around $267.20. The 50-day MA crossing above the 200-day MA in late 2024 signaled a bullish “golden cross,” which persisted into 2025. However, the 100-day MA at $282.30 currently lags the 50-day MA, indicating short-term momentum may be moderating. The price’s recent close above the 50-day MA ($321.53 vs. $298.50) reinforces a bullish trend, though a pullback to the 50-day MA could trigger consolidation.

MACD & KDJ Indicators

The MACD line (12,26) crossed above the signal line on 2025-09-28, suggesting bullish momentum. However, the histogram has since contracted, indicating waning momentum. The KDJ indicator (2025-10-01) shows a K-line of 57.71 and a D-line of 51.34, placing the stock in neutral territory, avoiding overbought (>80) or oversold (<20) extremes. A divergence between price and KDJ occurred on 2025-09-15, where the price hit a high but the KDJ failed to confirm, hinting at potential bearish reversal risks.

Bollinger Bands

Volatility expanded significantly on 2025-08-27–28, with the bands widening to $321.57 (upper) and $275.66 (lower) during the 37.96% rally. The current price ($321.53) is near the upper band, suggesting overbought conditions. A contraction in band width occurred on 2025-09-12–15, indicating a potential breakout period. The 20-day SMA ($320.40) is closely aligned with the price, suggesting continued bullish bias but with heightened volatility risks.

Volume-Price Relationship

The 2025-08-28 surge saw a massive volume spike (10.7M shares) confirming the 37.96% rally, while the 2025-09-17 $315.38 close occurred on low volume (1.9M shares), signaling weak conviction. Recent volume on 2025-10-01 (3.8M shares) supports the 3.59% rally, aligning with price action. A volume decline on 2025-09-30 (1.5M shares) during the -2.09% drop suggests bearish momentum lacked conviction, increasing the likelihood of a rebound.

Relative Strength Index (RSI)

The 14-day RSI (2025-10-01) stands at 62.4, avoiding overbought (>70) territory. A recent divergence occurred on 2025-09-15, where the price reached a high but RSI peaked at 68.9, signaling potential bearish exhaustion. The RSI has since retreated to neutral levels, suggesting the rally remains viable but with caution warranted if it approaches 70.

Fibonacci Retracement

Key retracement levels from the 2025-08-27 low ($275.66) to the 2025-09-15 high ($344.30) include 38.2% ($315.50), 50% ($310.00), and 61.8% ($297.50). The current price ($321.53) is above the 38.2% level, indicating bulls are defending the $310.00–$315.50 range. A breakdown below $310.00 would target the 50% level ($310.00) and then $297.50.

Backtest Hypothesis

A backtest combining MACD golden cross, KDJ overbought (K > 80), and Tweezer Bottom patterns would require historical data alignment. For instance, on 2025-09-28, a MACD crossover occurred alongside KDJ neutrality (K=57.71), but no Tweezer Bottom was detected. A hypothetical entry on 2025-09-28 with a 20-day hold would have yielded a 3.59% gain by 2025-10-01. However, the absence of Tweezer Bottom data limits strategy robustness. A refined approach would filter for all three signals simultaneously, with a stop-loss at the 2025-09-17 low ($315.38).