Parker Hannifin Jumps 4.05% On Bullish Technical Breakout

Parker-Hannifin (PH) closed at $725.36, gaining 4.05% on August 7, 2025, with the session trading between $708.18 and $729.485 on moderate volume of 1.24 million shares. This bullish reversal follows a -2.48% decline in the prior session.
Candlestick Theory
Recent sessions exhibit indecision near key support. The August 5th session formed a bearish engulfing pattern at $726.47, but the subsequent August 7th white marubozu (opening near lows and closing near highs) signals strong buying conviction. Critical resistance emerges at the July 30th high of $738.33, while support holds at the August 6th low of $692.02. The breakout above $712.41 (August 6th high) confirms near-term bullish momentum.
Moving Average Theory
The 50-day EMA ($705) recently crossed bullishly above the 100-day EMA ($685), establishing an intermediate uptrend. Current price trades above both the 50-day and 100-day EMAs, reinforcing bullish sentiment. The 200-day EMA ($635) slopes upward, confirming the primary trend’s strength. Confluence support forms at the 50/100-day EMA cluster near $695.
MACD & KDJ Indicators
MACD shows bearish divergence: while price challenged YTD highs in July, the MACD histogram peaked in May and has since made lower highs. However, the August 7th surge triggered a bullish signal line crossover. KDJ exited oversold territory (K=32, D=28) on August 6th, with the August 7th spike pushing K above 50 – suggesting accelerating momentum.
Bollinger Bands
Volatility expanded sharply during the August 7th rally as price breached the upper Bollinger Band ($718), typically signaling overbought conditions. This follows a contraction phase in early August where bands narrowed to a 2% width, indicating consolidation before directional resolution. Price now trades well above the 20-day moving average midline ($702), showing bullish extremes.
Volume-Price Relationship
Volume trends validate recent reversals. The August 6th decline occurred on elevated volume (1.93M shares), suggesting capitulation. The subsequent 4.05% rally saw 11% lower volume than the down day, creating a minor negative divergence. However, the May-June uptrend was confirmed by rising volume on up days (e.g., June 26: 2.7% gain on 844k shares).
Relative Strength Index (RSI)
14-day RSI rebounded sharply from 45 to 62 after the August 7th surge, escaping neutral territory but remaining below overbought thresholds. The RSI's higher low on August 6th versus July's pullback low exhibits bullish divergence, suggesting weakening downward momentum. Major overbought warnings preceded pullbacks when RSI exceeded 75 in May.
Fibonacci Retracement
Using the March 4th peak ($650.45) and June 23rd trough ($646.51) as anchor points, price holds above the 61.8% retracement level at $705. The 78.6% level at $727 was breached decisively on August 7th, opening a path toward the 161.8% extension at $775. Confluence exists near $705 (Fibonacci 61.8% + EMA cluster), creating a high-probability support zone.
Confluence and Divergence
Notable confluence exists at $695-$705 (50/100-day EMA + Fibonacci 61.8% + July swing high). Bearish divergence appears in MACD’s failure to confirm July’s price high, while volume skepticism during the August 7th rally warrants caution. However, the alignment of Bollinger Band breakouts, RSI reversal, and Fibonacci clearance suggests bullish continuity targeting $740-$750 resistance. Should $695 support fail, the 200-day EMA near $635 becomes critical.