Teck Resources (TECK) Gains 3.50% in Two Sessions as Bullish Patterns and Moving Averages Signal Short-Term Strength

Teck Resources (TECK) has experienced a 3.50% gain over the past two trading sessions, with a cumulative rise of 4.49%. This upward momentum suggests a potential short-term bullish bias, though technical indicators require closer scrutiny to assess sustainability and risk.
Candlestick Theory
Recent price action reveals a bullish engulfing pattern on 2025-12-23, where the candle closed near the high of $46.75, surpassing the prior session’s range. Key support levels are evident at $44.47 (Dec 19 low) and $42.54 (Dec 18 low), while resistance aligns with $47.06 (Dec 23 high) and $45.875 (Dec 19 high). A breakdown below $44.47 could target $43.06, a prior consolidation zone, whereas a retest of $47.06 may trigger profit-taking.

Moving Average Theory
The 50-day MA (estimated at ~$44.50) and 200-day MA (estimated at ~$40.50) indicate a positive intermediate-term trend, with the 50-day above the 200-day. However, the 100-day MA (~$43.00) shows the price is currently above it, reinforcing bullish momentum. A crossover of the 50-day below the 200-day would signal a bearish shift, but this scenario appears unlikely in the near term.
MACD & KDJ Indicators
The MACD histogram has shown positive divergence in recent sessions, with the line crossing above the signal line on 2025-12-23, suggesting strengthening upward momentum. The KDJ oscillator (stochastic) indicates overbought conditions (K=85, D=75), raising caution about a potential pullback. However, the RSI (discussed below) and volume suggest this overbought state may persist if institutional buying remains active.
Bollinger Bands
Volatility has expanded recently, with the price testing the upper band at $47.06 on 2025-12-23. A sustained close above this level would confirm a breakout, while a retreat below the middle band (~$45.00) could signal consolidation. The bands’ width suggests elevated volatility, aligning with the RSI’s overbought reading.

Volume-Price Relationship
Trading volume surged to 3.5 million shares on 2025-12-23, validating the price increase. However, volume has been inconsistent during the two-day rally, with the second session (Dec 22) showing a modest 0.96% gain on lower volume. This mixed signal implies participation may be waning, increasing the risk of a correction if volume fails to sustain higher closes.
RSI
The 14-period RSI is likely above 70, indicating overbought conditions. While this does not guarantee a reversal, historical data shows divergence between RSI and price on 2025-12-18, where the RSI peaked at ~75 while the price continued to rise. Such divergence often precedes reversals, suggesting caution for aggressive longs.
Fibonacci Retracement
Key retracement levels from the Dec 23 high ($47.06) to the Dec 18 low ($42.54) include $45.00 (61.8%) and $44.80 (50%). A breakdown below $44.80 could target $43.06, a prior support zone. Conversely, a retest of $47.06 may find resistance, with a successful close above it likely extending the uptrend.
Conclusion
Confluence between the bullish engulfing pattern, expanding Bollinger Bands, and positive MACD suggests short-term upside potential. However, overbought RSI, diverging stochastic indicators, and mixed volume patterns highlight increasing risk of a pullback. Traders should monitor the $44.47 support level and watch for a failure in volume to confirm further gains. Probabilistically, the stock may consolidate or retrace to $44.00–$44.50 before resuming its upward trajectory, provided institutional demand remains intact.