Tyler Technologies Jumps 3.67% to $602.99 as Technical Indicators Signal Bullish Momentum

Tyler Technologies (TYL) advanced 3.67% in the most recent session, closing at $602.99 after trading between $584.10 and $603.02 on moderate volume. This upward move merits technical examination through multiple lenses.
Candlestick Theory
Recent price action reveals significant candlestick patterns. The session ending July 31st formed a bullish engulfing pattern at $584.56, breaking resistance near $580 after a consolidation phase. Subsequent sessions respected the $584 support level, establishing it as a key technical floor. The latest close at $602.99 approaches overhead resistance near $605-$610, an area that previously capped prices in late June and early July. A near-term bullish bias would strengthen decisively upon closing above $610.
Moving Average Theory
The 50-day moving average ($584) crossed above the 100-day MA ($575) in mid-July, confirming a bullish near-term structure. Crucially, the price has maintained consistent support at the 50-day MA during pullbacks over the past month. The 200-day MA ($570) continues to trend upward, reinforcing the broader uptrend. Current positioning above all three major moving averages suggests underlying strength, though a sustained move below the 50-day MA would undermine this outlook.
MACD & KDJ Indicators
The MACD histogram turned positive in late July after a bullish crossover, confirming upward momentum. Both lines remain above the zero threshold, supporting the bullish trend structure. Concurrently, the KDJ indicator shows the %K line (78) holding above %D (75) in the neutral zone, avoiding overbought territory (>80) that preceded the June pullback. This tandem positive alignment suggests continued upside momentum without immediate exhaustion signals.
Bollinger Bands
Volatility compression occurred in mid-July as bands contracted near $560-$580, preceding the breakout above the upper band on July 31st. Prices have since remained near the upper band, indicating sustained bullish pressure. The 20-day average ($585) slopes upward, reinforcing the trend direction. A decisive close above $605 would further widen the bands, potentially accelerating upside momentum.
Volume-Price Relationship
Volume patterns validate the bullish structure. The July 31st breakout occurred on significantly above-average volume (1.01M shares vs. 30-day avg ~400K), confirming institutional participation. Recent pullbacks have featured diminishing volume, notably during the August 1st decline (-0.50%), indicating limited conviction behind sell-offs. The latest advance on moderate volume (337K) warrants monitoring for follow-through accumulation.
Relative Strength Index (RSI)
The 14-day RSI currently reads 62, in neutral territory after recovering from oversold conditions (<40) in early July. Importantly, RSI made a higher low in July while prices tested the same support area, creating a positive divergence that preceded the recent advance. The indicator maintains healthy momentum without breaching overbought territory (70+), allowing room for additional upside.
Fibonacci Retracement
Applying Fibonacci levels to the June high ($630) and July low ($549) reveals key retracement zones. The 61.8% retracement at $602 aligned precisely with the August 4th close, making it critical short-term resistance. A convincing break above this level would target the 78.6% retracement ($612) and potentially full recovery to $630. The 38.2% retracement ($584) now serves as major support, aligning with the 50-day moving average and recent swing lows, creating a technical confluence zone.
Confluence emerges with multiple indicators validating $584 as critical support, while the Fibonacci 61.8% level at $602 and prior price congestion near $605 create a clear resistance cluster. The only notable divergence exists in the RSI, which has not yet confirmed the new price high with a corresponding momentum high—a condition requiring monitoring. Tyler Technologies exhibits constructive technical positioning overall, with breaks above $602-$605 needed to confirm bullish continuation.