Targa Resources Stock Surges 8% On Bullish Technicals And Golden Cross Breakout

Candlestick Theory
Targa Resources' recent price action reveals a short-term bullish bias, evidenced by three consecutive white candles from June 24–26 (2025), forming a Three White Soldiers pattern near the $165 support level. A hammer candle on June 23 at $164.73 preceded this rally, signaling rejection of lower prices. Key resistance is established at $177–$180 (April 2025 highs and recent upper wicks), while support converges near $165–$168, aligning with June’s consolidation lows and the 38.2% Fibonacci level. This zone held firm during the June 20 and June 23 sell-offs, underscoring its technical significance.
Moving Average Theory
The 50-day, 100-day, and 200-day moving averages (MA) reflect a strengthening uptrend. The 50-day MA ($168.50) recently crossed above the 200-day MA ($165.80), generating a bullish "golden cross." Current price ($175.79) trades robustly above all three MAs, confirming short-term momentum. However, the 200-day MA’s shallow upward slope suggests the longer-term trend lacks aggressive acceleration. The alignment of price above all key MAs supports bullish continuity, provided the 50-day MA holds as dynamic support.
MACD & KDJ Indicators
MACD (12,26,9) exhibits a bullish crossover above the signal line, with the histogram expanding positively – affirming upward momentum. KDJ oscillators (14-period) show the K-line (89) and D-line (82) in overbought territory (>80), signaling stretched short-term conditions. While such KDJ readings often precede consolidations, the MACD’s strength suggests any pullback may be shallow. No bearish divergence is evident yet, as both price and momentum indicators make higher highs.
Bollinger Bands
Price currently rides the upper Bollinger Band (20-period, 2σ) at $175.50, reflecting strong bullish momentum. The bands expanded sharply on June 24–26 after a contraction phase in mid-June, indicating volatility breakout to the upside. Historically, prolonged touches of the upper band can foreshadow short-term exhaustion. However, the absence of reversal candles implies the trend may extend before mean-reversion toward the midline ($170.50) occurs.
Volume-Price Relationship
Volume surged 25% above average during the June 24–26 advance, validating the breakout’s sustainability. Earlier downswings (e.g., June 23 and June 16) saw elevated volume, suggesting distribution was absorbed efficiently. The current rally’s volume profile exceeds that of May’s failed recovery attempts, reinforcing buyer conviction. No notable volume-price divergence exists, supporting trend continuation.
Relative Strength Index (RSI)
The 14-day RSI reads 72, entering overbought territory (>70). While this hints at near-term exhaustion, its slope remains steep and directional – typical of strong trends where overbought conditions persist. Previous corrections in April and May began when RSI exceeded 75. Given the current momentum, RSI may remain elevated before triggering a pullback. Traders should monitor for bearish divergences on any new highs.
Fibonacci Retracement
Using the swing low of $154.15 (April 9, 2025) and high of $179.25 (April 28), key Fibonacci levels emerge:
- 23.6%: $171.20 (recently held as support on June 13)
- 38.2%: $165.60 (aligned with June’s support cluster)
- 61.8%: $158.10
- 78.6%: $177.00 – the critical resistance coinciding with April’s peak.
The price is now testing this 78.6% retracement level ($177). A decisive close above $177 could open the path to $190 (127.2% extension).
Confluence & Divergence Insights
Significant confluence exists at $177–$180, where Fibonacci resistance, April’s price ceiling, and Bollinger Band extremes converge. This zone presents a high-probability profit-taking area. Volume and MACD alignment bolster the bullish case near-term, though KDJ and RSI overbought readings advise against chasing entries here. No material divergence exists, but failure to breach $177 could trigger consolidation toward $170–$172 (50-day MA + 23.6% Fib).