TE Connectivity Shares Surge 3.36% in Two Sessions, Extending 4.34% Rally Since Dec. 9 Aligned with Technical Indicators

TE Connectivity (TEL) has experienced a 3.36% surge over the past two trading sessions, extending a 4.34% rally since December 9, 2025. This upward momentum aligns with a broader technical backdrop that warrants deeper scrutiny through multiple analytical lenses.
Candlestick Theory
Recent price action suggests a potential bullish reversal pattern, with the stock forming a Higher High and Higher Low structure since late November. Key support levels emerge at $220-225 (aligned with prior consolidation zones) and $213 (a prior psychological level). Resistance is concentrated at $245-250, where the stock has historically faced distribution pressures. A break above $245 would validate a shift in sentiment, while a retest of $225 could trigger a short-term correction.
Moving Average Theory
Short-term momentum is reinforced by the 50-day MA crossing above the 100-day MA, signaling a bullish "Golden Cross." The 200-day MA remains a critical baseline at ~$220; as long as price stays above this level, the long-term uptrend remains intact. The confluence of the 50- and 100-day MAs near $230-235 suggests a likely area for near-term consolidation or continuation.
MACD & KDJ Indicators
The MACD histogram has turned positive, with the line crossing above the signal line in late December, confirming strengthening bullish momentum. However, the KDJ oscillator (Stochastic RSI) currently sits in overbought territory (>80), suggesting caution. While this may indicate exhaustion, the absence of bearish divergence between price and momentum indicators reduces immediate reversal risk. A pullback below the 20-period K-line could signal a short-term retracement.
Bollinger Bands
Volatility has expanded recently, with price testing the upper band at $245-250. This suggests heightened buying pressure but also raises the risk of a mean reversion. The bands’ width has widened from ~$10 to ~$15, reflecting increased uncertainty. A sustained close below the middle band (~$237) would invalidate the bullish bias, while a breakout above the upper band could extend the rally.
Volume-Price Relationship
Trading volume has surged during the recent rally, particularly on December 10 (volume: 3.92M shares), validating the price action. However, the lack of a corresponding spike in volume during the December 5-8 consolidation phase suggests limited conviction in the breakout. Divergence may emerge if volume contracts during further advances, signaling potential exhaustion.
Relative Strength Index (RSI)
The 14-period RSI has spiked to ~75, approaching overbought territory. While this is not an immediate sell signal, it highlights the need for a pullback to consolidate gains. A close below 50 would indicate weakening momentum, while a retest of the 70 level could confirm a bullish trend continuation.
Fibonacci Retracement
Key Fibonacci levels derived from the November 20-December 10 rally (high: $249.36, low: $213.56) include $237.50 (61.8%) and $244.50 (38.2%). The current price near $244.13 suggests a potential test of the 38.2% retracement level as a near-term pivot. A break above $244.50 could target the 23.6% level at $247, while a failure to hold $237.50 might trigger a retest of the 50% level ($231.46).
Confluence and Divergences
The alignment of bullish MAs, expanding Bollinger Bands, and strong volume supports a continuation of the uptrend. However, the overbought RSI and KDJ oscillator highlight a risk of near-term profit-taking. Divergences are limited at present, but a decoupling between price and volume during the next rally could signal waning momentum.