Royal Bank Of Canada Stock Rises 1.06% As Technical Indicators Signal Bullish Momentum

Royal Bank Of Canada (RY) experienced a 1.06% gain in its most recent trading session, closing at CAD 137.68. This analysis evaluates the stock’s technical dynamics using multiple methodologies.
Candlestick Theory
Recent candlestick patterns reveal a constructive setup. The latest session (August 26) formed a bullish white candle closing near its high (CAD 137.68), countering the prior session’s bearish candle. Key resistance is established at CAD 138.34 (August 22 high), while support emerges at CAD 136.10–136.20 (August 26 low and August 21 close). A consistent failure to breach CAD 138.34 suggests this zone is a critical resistance barrier. Conversely, the resilience near CAD 136 implies accumulation interest, reinforcing this level as short-term support.
Moving Average Theory
The 50-day and 100-day moving averages (MAs) indicate a bullish near-term bias, with the price trading above both. The 200-day MA near CAD 126.50 (derived from the data trend) anchors long-term support. Crucially, the 50-day MA remains above the 100-day MA, confirming intermediate-term upside momentum. Sustained trading above CAD 136 would likely maintain this bullish alignment.
MACD & KDJ Indicators
The MACD histogram shows diminishing negative momentum, suggesting weakening bearish pressure as it approaches a bullish crossover. Concurrently, the KDJ oscillator (using standard 14-day settings) indicates the stock is exiting oversold territory, with the %K line crossing above %D. This alignment implies nascent upward momentum. However, neither indicator has yet entered overbought territory (KDJ < 80, MACD not extended), leaving room for further upside before caution is warranted.
Bollinger Bands
Volatility contraction is evident, with the bands narrowing during the August 19–25 consolidation (price range CAD 136.20–137.78). The August 26 close near the upper band (estimated near CAD 137.80) signals positive short-term bias. A confirmed close above the upper band would reinforce bullish momentum, though repeated tests without breakout may foreshadow a reversion to the mean near the 20-day SMA (approx. CAD 136.60).
Volume-Price Relationship
Volume trends validate recent strength. The August 26 advance occurred on 1.39 million shares—60% above the 20-day average—indicating conviction behind the breakout. This contrasts with the August 25 decline on below-average volume (845K shares), suggesting limited seller commitment. Persistent high volume on up days would support sustainability, while shrinking volume on rallies would signal caution.
Relative Strength Index (RSI)
The 14-day RSI reads approximately 58, reflecting neutral momentum without overbought/oversold extremes. This positioning aligns with the gradual recovery from the August 13 low near CAD 133.43, where RSI tested (but held above) the 30 oversold threshold. The absence of divergence versus price reinforces the current uptrend’s integrity, though proximity to the 60–65 zone warrants monitoring for potential near-term consolidation.
Fibonacci Retracement
Using the swing low of CAD 118.84 (October 28, 2024) and high of CAD 138.34 (August 22, 2025), key retracement levels emerge. The 23.6% level (CAD 134.20) and 38.2% level (CAD 131.60) recently acted as support during pullbacks. Current trading above the 23.6% level suggests bullish continuation potential. A break above the 0% level (CAD 138.34) could trigger an extension toward CAD 140, while failure to hold CAD 134.20 would shift focus to the 38.2% support.
Confluence and Divergence Observations
Confluence appears at CAD 136–136.20, where multiple indicators (Bollinger midpoint, 50-day MA, candlestick support) converge to create a strong technical floor. A volume-backed breakout above resistance at CAD 138.34 would further align trend, momentum, and volatility indicators. A notable divergence occurred around August 13–15 when price made a higher low, but MACD recorded a lower low—this bearish signal failed to materialize into sustained downside, reflecting underlying demand. Such resilience in the face of momentary divergence reinforces the broader uptrend structure.
The combined technical landscape for Royal Bank Of Canada suggests a cautiously bullish bias. The next decisive test will be a volume-supported close above CAD 138.34 to confirm continuation, while a break below CAD 136 could invalidate the near-term trajectory.