NTES Surges 7.25% On High Volume Breaching Key 140 Resistance

Candlestick Theory
NTES exhibits a strong bullish candlestick pattern in its most recent session (7.25% gain on high volume), confirming a breakout above the key resistance level near $140. This level had capped prices multiple times in August–September 2025. The breakout, supported by a two-day rally of 8.16%, suggests renewed bullish momentum. Prior higher lows near $128–$130 (established in late August) now serve as primary support, while the new resistance level emerges near the psychological $150 zone.
Moving Average Theory
The 50-day MA ($117.25), 100-day MA ($104.80), and 200-day MA ($94.30) all slope upward, confirming a robust long-term uptrend. Notably, the 50-day crossed above the 200-day in August 2025 (Golden Cross), reinforcing bullish sentiment. The current price ($144) trades well above all three averages, indicating strong short-term momentum. The convergence of these MAs below the price action creates dynamic support near $124–$128.
MACD & KDJ Indicators
MACD (12,26,9) shows a recent bullish crossover, with the histogram expanding positively—signaling accelerating upward momentum. KDJ reveals the %J line at 82, nearing overbought territory (>80). While KDJ’s position suggests caution, its upward trajectory aligns with MACD’s strength. This confluence supports near-term upside, though divergence may emerge if KDJ enters extreme overbought levels while price gains decelerate.
Bollinger Bands
Volatility expanded sharply during the 7.25% surge, with price touching the upper band ($144.05). The bands had contracted in early September, preceding this breakout—a typical compression-before-expansion pattern. Current price proximity to the upper band signals short-term overextension. A consolidation phase may occur near $141–$144 (mid-band) to relieve tension, with the lower band ($127) acting as major support.
Volume-Price Relationship
The breakout was validated by a surge in volume (1.14M shares vs. 30-day avg. ~578K), demonstrating strong institutional participation. Volume trends show consistent accumulation during rallies (e.g., May 15th and August 25th surges) and distribution during pullbacks. This volume-profile alignment with price direction underscores the sustainability of the current uptrend.
Relative Strength Index (RSI)
The 14-day RSI reads 68, approaching overbought territory (>70) but not yet extreme. This aligns with the recent bullish momentum. Historically, RSI peaks above 75 have preceded minor corrections (e.g., July 2025), warranting vigilance. However, RSI’s upward slope and position below overbought thresholds suggest residual buying pressure.
Fibonacci Retracement
Using the swing low from May 14, 2025 ($107.11) and the August 13th peak ($139.22), key retracement levels emerge. The 61.8% level ($127.50) recently served as support during late August pullbacks. The current breakout above the 78.6% level ($141.50) opens a path toward the 127.2% extension ($153). This $141–$142 zone now becomes critical support.
Confluence & Divergence Insights
Multiple indicators converge at $140–$142: the Fibonacci 78.6% retracement, prior resistance-turned-support, and the mid-Bollinger Band. This zone now forms a robust technical floor. Divergence appears between KDJ’s overbought warning and MACD/RSI’s supportive momentum. While not yet bearish, this suggests near-term consolidation is probable before further upside.
Probabilistic Outlook
The technical structure favors continued upside for NTES, supported by trend strength, volume conviction, and Fibonacci targets. However, overextensions in Bollinger Bands and KDJ increase the likelihood of a short-term pullback to test $141 support. A sustained close above $144 may propel prices toward $150, while failure to hold $141 could trigger a retreat to $136 (50-day MA confluence).