Northern Trust Surges 4.76% on Bullish Technicals and High Volume Breakout

Candlestick Theory
Northern Trust (NTRS) exhibits a pronounced bullish candlestick pattern in the most recent session, closing at $123.80 after a 4.76% rally on elevated volume. This follows a volatile sequence: a bearish engulfing pattern on June 24 (-2.18%) was swiftly invalidated by a strong bullish marubozu on June 23 (+8.01%), indicating robust buyer commitment. Key resistance sits near $124.15 (June 25 high), while support converges at $117.72 (June 23 low) and $110.90 (June 16 swing point). The current rejection of sub-$118 levels reinforces $118–$120 as a critical demand zone.
Moving Average Theory
The 50-day, 100-day, and 200-day moving averages demonstrate a bullish alignment, with the shortest average above the longest (50 > 100 > 200). Recent price action rebounded emphatically off the 100-day MA near $108 (June 9–10), confirming it as dynamic support. The 200-day MA slopes upward from $92–$96, anchoring the primary bull trend. A "golden cross" materialized in early May when the 50-day MA ($105) crossed above the 200-day MA ($98), foreshadowing the current uptrend. The June 25 close at $123.80 positions price well above all three averages, reinforcing near-term bullish momentum.
MACD & KDJ Indicators
MACD registers a bullish crossover above the signal line as of June 23, accelerating with the subsequent rally. Histogram bars expand positively, confirming strengthening upward momentum. KDJ concurrently exited oversold territory (below 30) on June 11, with the K-line sharply ascending above the D-line into overbought convergence (K: 85, D: 79, J: 91 on June 25). This synchronized bullish alignment across both oscillators suggests sustained upside potential, though overbought KDJ readings warrant monitoring for near-term exhaustion.
Bollinger Bands
Volatility expanded sharply during the June 23 surge, with price breaking above the upper Bollinger Band ($118) on explosive volume—a classic breakout signal. The bands subsequently widened, reflecting heightened volatility conviction. The June 25 close near the upper band ($124.15) implies continuation strength, though a close outside the band may precipitate a minor pullback. Support now converges at the 20-day moving average midline ($115.60), with a band squeeze in late May having resolved bullishly.
Volume-Price Relationship
The June 23 upthrust occurred on 15.6 million shares—over triple the 30-day average—validating the breakout as high-conviction. Subsequent sessions show elevated volume on advancing days (June 25: 4.3M shares) versus diminished activity during pullbacks, confirming accumulation. Volume divergence is absent at recent highs, supporting trend sustainability. Notably, the $117–$122 zone now represents high-volume node support.
Relative Strength Index (RSI)
RSI(14) escalated to 67 on June 25, approaching overbought territory (>70) but not yet signaling exhaustion. This follows a reset from oversold conditions (<30) in mid-June. The current reading aligns with rising price momentum, though traders may anticipate resistance near 70–72 where prior pullbacks originated. A divergence remains absent, suggesting no imminent reversal.
Fibonacci Retracement
Applying Fibonacci to the dominant uptrend from the April 22 low ($86.78) to the June 25 high ($124.15), key retracement support emerges. The 38.2% level ($109.50) underpinned the June 10 bounce, while the 23.6% level ($115.40) marked the June 17 trough. This cluster near $109–$116 now forms critical confluence support. Resistance targets include the 127.2% extension near $132, though the psychological $125 barrier requires monitoring for interim supply.
Confluence & Divergence Notes
Bullish confluence appears robust:
- Breakout above Bollinger Bands + MACD crossover + volume surge aligned on June 23.
- 100-day MA support ($108) coincides with Fibonacci 38.2% retracement ($109.50).
- RSI momentum ascent lacks bearish divergence despite nearing overbought territory.
No material divergences exist. Primary caution arises from short-term overbought KDJ and proximity to psychological resistance at $125, which may trigger profit-taking. However, multi-indicator alignment supports continuation targeting $128–$130.