TE Connectivity Surges 3.46% as Bullish Candlestick Pattern Emerges, Faces Key Resistance at $218.39

Candlestick Theory
The recent 3.46% surge in TE Connectivity (TE Connectivity) forms a bullish candle with a long upper wick, suggesting strong buying pressure but potential near-term resistance. Key support levels are identified at $208.69 (2026-02-05 close) and $215.79 (2026-02-04 close), while resistance clusters emerge at $218.39 (2026-02-06 high) and $221.34 (2026-01-30 high). A potential bullish engulfing pattern is evident as the recent close surpasses the prior session’s bearish candle, indicating a possible trend reversal. However, a failure to hold above $215.91 may trigger a retest of support at $206.84.

Moving Average Theory

TE Connectivity’s 50-day moving average (~$225) currently sits above the 200-day (~$210), confirming an intermediate-term bullish bias. The 100-day (~$222) aligns with the 50-day, reinforcing the uptrend. Short-term momentum is supported by the price trading above the 50-day MA, but a cross below this level could signal weakening momentum. The 200-day MA acts as a critical support zone; a breach below $210 may invite further correction.

MACD & KDJ Indicators
The MACD histogram shows a narrowing divergence as the bullish momentum wanes, with the MACD line ($12) approaching the signal line ($8). This suggests diminishing upward momentum, though the positive territory remains intact. The KDJ stochastic oscillator indicates overbought conditions (K: 85, D: 78), with K approaching D from above, hinting at a potential pullback. A bearish crossover in the KDJ would strengthen the case for a near-term correction, especially if the price fails to break above $218.

Bollinger Bands

Volatility has expanded, with the 20-day Bollinger Bands widening to $210 (lower) and $230 (upper). The current price ($215.91) resides near the lower band, suggesting oversold conditions and a potential rebound. Band contraction observed in late January (e.g., 2026-01-27) preceded a breakout, indicating similar dynamics may recur. A sustained close above the upper band could validate a continuation of the uptrend.

Volume-Price Relationship

Trading volume spiked on the recent 3.46% rally (2.58M shares), exceeding the 30-day average (~2M), validating the move’s strength. However, volume has declined on subsequent sessions (e.g., 1.9M on 2026-02-05), signaling potential exhaustion. A surge in volume during a breakout above $218 would bolster bullish conviction, while a lack of volume during a test of support at $208.69 may indicate weak hands.

Relative Strength Index (RSI)

The 14-day RSI (~65) remains in neutral-to-oversold territory, avoiding overbought (>70) levels despite the recent rally. This suggests the uptrend retains momentum, though a move above 70 would trigger caution. A drop below 50 may confirm a bearish shift, particularly if the 50-day MA is breached.

Fibonacci Retracement

Key Fibonacci levels derived from the 2025-04-09 low ($120) to the 2025-11-20 high ($239.36) include 38.2% at $186, 50% at $179, and 61.8% at $172. The current price ($215.91) is above the 78.6% retracement level ($190), indicating a potential target at the 100% level ($239). A breakdown below $190 would invalidate the bullish case, with deeper retracements (e.g., 61.8%) becoming critical.

Confluence and Divergences

The alignment of bullish candlestick patterns, moving averages, and RSI neutrality supports a continuation of the uptrend, with $218-220 as the next target. However, overbought KDJ and MACD divergence suggest a high probability of consolidation or a pullback to test support at $208.69. Divergences between the RSI and price action (e.g., higher highs with lower RSI peaks) would strengthen bearish signals. A failure to hold above the 50-day MA or a breakdown below $200 would likely trigger a deeper correction toward Fibonacci levels.