Thermo Fisher Jumps 5.6% on Bullish Technicals as Volume Surges

Thermo Fisher (TMO) advanced 5.60% to close at $427.62 in the latest session, marking a significant bullish candlestick that fully engulfed the prior day's decline. This price action suggests strong buyer conviction, establishing immediate support at $405.15 (the session low) and resistance near $429, aligning with the July 17 high.
Moving Average Theory
The 50-day moving average currently hovers near $415, while the 100-day and 200-day averages trend around $420 and $450 respectively. With the price reclaiming the 50-DMA after a brief dip below it last week, short-term momentum appears positive. However, the sustained trade below the 200-DMA since April confirms the broader intermediate-term downtrend remains intact. A golden cross between the 50 and 100-DMA would be needed to signal a decisive trend reversal.
MACD & KDJ Indicators
Recent MACD histogram bars show diminishing negative momentum, with the MACD line attempting to cross above the signal line – a potential bullish inflection. Concurrently, the KDJ oscillator exited oversold territory (K-line: 25 → 65), supporting near-term upside potential. Though not yet overbought, this convergence suggests weakening downward pressure.
Bollinger Bands
Price has rebounded from the lower Bollinger Band ($390 zone in late June) to challenge the middle band ($420). Band width contracted 18% during June’s consolidation, and the current expansion alongside rising prices implies renewed directional momentum. A sustained break above the middle band would open upside toward the upper band near $445.
Volume-Price Relationship
The bullish engulfing candle materialized on 3.67 million shares traded – the highest volume in three weeks. This climactic volume validates the breakout’s legitimacy, contrasting with the unconvincingly low volume during the prior two down days. Accumulation patterns are evident above the $405 support level, where volume spikes accompanied key reversals in late June and mid-July.
Relative Strength Index (RSI)
The 14-day RSI reading of 55 reflects neutral momentum, recovering from oversold conditions (sub-30) in late June but not yet challenging overbought territory. While recent strength has lifted RSI from 42 to 55 in five sessions, its mid-range position allows room for additional upside before warning signals might emerge.
Fibonacci Retracement
Applying Fibonacci levels to the April peak ($571.47) and June trough ($385.46) reveals critical retracement barriers. The latest rally stalled near the 38.2% retracement ($429.50), now acting as resistance. A decisive break above this level would expose the 50% retracement at $478.50. Notably, the 61.8% level ($528) aligns with the 200-DMA, creating a major technical confluence zone.
Confluence and Divergence Observations
Confluence exists at $405–$410, where the 50-DMA, July swing low, and Bollinger lower band converge to form robust support. Bullish confirmation emerges from volume-backed price recovery, KDJ oversold reversal, and MACD momentum shift. A notable divergence occurred in early July when price made a lower low ($393) while RSI printed a higher low – a hidden bullish signal that preceded the current rebound. The primary divergence remains between intermediate (200-DMA resistance) and near-term (bullish candlestick/volume) trends, suggesting continued volatility within the broader downtrend unless $429 resistance is convincingly breached.