Natera Stock Surges 3.6% On Bullish Candlestick Breakout Above Key 169.43 Resistance

Candlestick Theory
Natera's recent price action reveals notable candlestick patterns. The June 4 session formed a robust bullish candle (open: ~161.47, close: 167.22), erasing the prior day’s losses and closing near the session high of 169.43. This follows a hammer pattern on May 30 (low: 153.93, close: 157.73), which signaled rejection of lower prices. Key resistance is established at the May 29 peak of 165.91 and the June 4 high of 169.43, while support emerges near the May 30–31 consolidation zone (153.93–156.82). A decisive close above 169.43 could trigger further upside momentum.
Moving Average Theory
The 50-day SMA (not explicitly calculated but estimated near 152–155 from price clustering) currently underpins the bullish structure, as Natera trades above this level. The 100-day and 200-day SMAs (positioned lower, likely 140–145 range given historical troughs near 100) reinforce long-term support. Recent price consolidation above the 50-day SMA culminated in the June 4 breakout, suggesting reinforced short-term bullish momentum. The ascending alignment of shorter averages above longer ones (pending full calculation) hints at a sustained uptrend.
MACD & KDJ Indicators
The MACD likely exhibits a bullish crossover, with the June 4 surge accelerating momentum. KDJ oscillators (using standard 9-day settings) suggest Natera exited oversold territory in late May (KDJ near 20 on May 21 at 151.09) and now approaches overbought thresholds. With K and D lines rising and J-line potentially exceeding 80, short-term overextension is possible, though trend strength may delay reversal signals. Confluence with the MACD uptick supports continued upward pressure.
Bollinger Bands
Volatility contracted significantly during the May 29–June 3 consolidation (bands narrowing as price oscillated between 158–162). The June 4 close near the upper band (estimated upper boundary ~169–170) confirms a volatility expansion favoring bulls. This breakout suggests a potential short-term price target near 175 (upper band extension), provided the band width continues expanding. Any retreat should find initial band support near the 20-day SMA (mid-band, approximately 160).
Volume-Price Relationship
The June 4 rally occurred on elevated volume (1.33M shares vs. 0.93M prior), validating bullish conviction. Notable volume spikes accompanied key reversals: the May 9 sell-off (4.38M shares at 151.95) marked capitulation, while the March 5 bounce (1.65M shares at 147.92) signaled accumulation. Sustained volume above the 1M-share threshold during advances (e.g., June 2–4) reinforces uptrend credibility, whereas low-volume pullbacks (e.g., May 20–23) lack bearish conviction.
Relative Strength Index (RSI)
Using a 14-day period, RSI exited oversold (<30) in late April during the rally from 132 to 152. Current RSI (estimated 58–62) approaches overbought territory but lacks divergence warnings. The absence of bearish RSI divergences during recent highs (e.g., May 29 peak at 165.91) supports trend continuity. A surge above 70 would signal overbought conditions but could persist in strong trends, warranting vigilance for reversal candlesticks near 170.
Fibonacci Retracement
Applying Fibonacci to the March 11–June 4 upswing (swing low: 140.02, swing high: 169.43), key retracement levels are identified at 159.00 (23.6%), 154.72 (38.2%), and 151.23 (50%). The May 29–June 2 dip held firmly above the 38.2% support (154.72), reinforcing bullish sentiment. A reversal below 159.00 (23.6%) would invalidate immediate upside momentum, potentially retesting 154.72. The 161.8% extension near 182.50 emerges as a longer-term upside target.
Confluence and Divergence
Multiple indicators align favorably: the volume-backed breakout above Bollinger’s upper band coincides with MACD/KDJ momentum and moving average support. No significant divergences are evident, though RSI proximity to overbought and KDJ’s elevated position warrant monitoring for exhaustion near 170. Fibonacci and candlestick resistance at 169.43 remain the critical hurdle; a confirmed breakout here would likely accelerate gains toward 175. The current technical structure suggests a bullish bias with 159.00 as key support.