Teradyne Jumps 5.34% As Technicals Signal Bullish Reversal Above Key 140 Resistance

Teradyne (TER) rose 5.34% in the most recent trading session to close at $139.13, bouncing from an intraday low of $136.60 to a high of $139.91 on volume of 3.19 million shares, indicating strong bullish momentum following recent volatility.
Candlestick Theory
The recent price action formed a hammer candlestick at $132.08 on October 10 with a long lower wick (low: $131.75), signaling strong rejection of lower prices. Subsequent bullish candles culminated in a decisive green candle closing near the session high on October 13. Critical support now resides near $132, with resistance emerging at $140 (psychological barrier and swing high). A close above $140 would confirm bullish continuation potential.
Moving Average Theory
The price ($139.13) trades above all key moving averages: the 50-day (~$126), 100-day (~$118), and 200-day (~$105). The 50-day crossed above the 100-day and 200-day averages in Q3 2025, confirming a long-term bullish trend structure. Golden crosses remain intact, signaling underlying strength despite recent pullbacks.
MACD & KDJ Indicators
The MACD histogram turned positive after October 10’s low, reflecting strengthening momentum. KDJ shows the %K line (78) crossing above %D (73), indicating accelerating bullish momentum but approaching overbought territory (>80). While no bearish divergence exists, overbought readings suggest potential near-term consolidation before further upside.
Bollinger Bands
Bands contracted sharply during the October 10 sell-off, indicating compression before directional resolve. The October 13 close near the upper band (~$141) shows renewed bullish pressure. A sustained breakout above $140 would likely trigger band expansion, reinforcing upside momentum. Current bandwidth remains below the high-volatility peak observed in early October.
Volume-Price Relationship
The 9.03% sell-off on October 10 occurred on high volume (5.76 million shares), suggesting capitulation. Subsequent rebounds on October 13 (5.34% gain) and October 8 (3.18% gain) saw volume decline (3.19M and 2.60M shares), raising caution about sustainability. Volume divergence remains a concern despite price recovery.
Relative Strength Index (RSI)
The 14-day RSI (~62) rebounded sharply from oversold territory (<30) on October 10 but remains below the overbought threshold (70). This indicates recovering momentum with room for upside before reaching overheated conditions. RSI’s trajectory aligns with the bullish reversal but warrants monitoring near 70.
Fibonacci Retracement
Applying Fibonacci levels to the recent decline from $150.71 (October 6 peak) to $132.08 (October 10 trough): the 23.6% level ($136.54) was breached on October 13, with the 38.2% level ($139.22) nearly tested intraday. This zone now offers resistance. A confirmed break above $139.22 would target the 50% retracement ($141.40), aligning with the $140 technical resistance.
Confluence and Divergence Notes
Confluence exists at $132 support, reinforced by the hammer candlestick, volume spike, and Fibonacci 0% retracement level. Bullish alignment appears via rising MAs, MACD momentum shift, and RSI recovery. Notable divergence occurs between price recovery (higher highs) and declining volume since October 10, indicating weakened participation that may challenge trend sustainability. The proximity of price to the 38.2% Fibonacci level and Bollinger Upper Band at $141 suggests consolidation may precede further directional movement.