Thermo Fisher Jumps 3.95% On Bullish Technicals As Key Resistance Looms At 430

Thermo Fisher (TMO) gained 3.95% in the most recent trading session, closing at $421.48 on substantial volume of 2.23 million shares. This robust upward move forms the basis for our technical assessment, which integrates multiple indicators to evaluate potential future price direction. The analysis adheres to standardized calculation methodologies and observes critical confluences and divergences across frameworks.
Candlestick Theory
The latest candle exhibits a strong bullish marubozu pattern, opening near its low of $404.85 and closing near its high of $429.10 – signaling decisive buying pressure. This follows a hammer formation on June 30 (low wick at $401.45 closing mid-range), suggesting defense of the psychological $400 support. Immediate resistance emerges at $430-$435 (January 2025 consolidation zone), while $400-404 constitutes multi-touch support evidenced by repeated bounces in late June. The May 9 swing high of $432.73 may serve as near-term resistance.
Moving Average Theory
The 50-day MA ($414.20) recently crossed above the 100-day MA ($411.80), confirming a bullish near-term bias. Price currently trades above both averages, though remains below the declining 200-day MA ($473.30) – indicating longer-term bearish pressure. The convergence of short-term MAs near $413 creates dynamic support. Should price sustain above the 50/100-day cluster, it would reinforce intermediate bullish momentum against the backdrop of the primary downtrend defined by the 200-day MA's negative slope.
MACD & KDJ Indicators
MACD histogram shows increasing positive momentum as the signal line crosses above zero, corroborating the near-term uptrend. KDJ readings demonstrate bullish alignment (K-line: 68, D-line: 62, J-line: 80) though approaching overbought territory. Notably, June’s $390-405 consolidation formed a positive divergence where price made higher lows while KDJ formed higher troughs – warning of waning bearish momentum. Current KDJ elevation warrants monitoring for potential exhaustion near resistance zones.
Bollinger Bands
Bollinger Bandwidth contracted to 6-month lows in late June (volatility compression), preceding the recent expansionary breakout. Price now rides the upper band ($425), indicating strong upside momentum typically seen in trending phases. The breakout target projects to $450 based on bandwidth expansion magnitude. However, sustained upper-band tagging increases susceptibility to pullbacks toward the 20-period SMA ($415), now acting as dynamic support.
Volume-Price Relationship
The 3.95% advance occurred on 27% above-average volume, validating buyer conviction. This follows accumulation patterns in the $400-410 range where down days showed diminishing volume (June 24-27). Critical resistance tests should be monitored for volume confirmation – particularly near the $430 level where March 2025 distribution occurred. Bearishly, April’s breakdown below $440 featured climactic volume, establishing that zone as formidable resistance.
Relative Strength Index
The 14-day RSI (63) resides in neutral territory after rebounding from oversold conditions (<30) in late May. Current momentum lacks overbought signals, though the $430 resistance coincides with January peaks where RSI peaked near 72. A divergence would emerge if price reaches $435 without RSI exceeding 70, warning of waning momentum. The RSI’s higher low in June versus May’s trough signals strengthening upside potential.
Fibonacci Retracement
Applying Fib levels to the April 2 peak ($491.36) and May 15 trough ($390.50) shows the recent rally challenged the 61.8% retracement ($421.80) – now converted to support at today’s close. The 78.6% level ($433.50) aligns with January swing highs to form a high-probability resistance zone. Confluence exists at the 50% retracement ($408.60) – which contained June’s pullbacks – establishing it as a key support pivot.
Confluence & Divergence Synthesis
Bullish confluence appears at $408-415 (50/100-day MA cluster, Fib 50%, volume support) with upside validation above $430 (Bollinger target, Fib 78.6%). Bearish divergence manifests in MACD-KDJ dual overextension and RSI resistance alignment near $435. Critical watchpoints include volume characteristics near $430 resistance and KDJ’s ability to sustain momentum above 80. Short-term bias remains cautiously bullish barring failure below $408, though longer-term trend reversal requires clearance above the 200-day MA.