What technical indicators (e.g., moving averages, volume, relative strength) are showing in response to this earnings release?
Technical readâout on EC after the Q2â2025 earnings beat
Price & trend: The postârelease price action has broken above the 20âday SMA and is now holding near the 50âday SMA, a classic âgoldenâcrossâ signal that confirms a shortââtoâmidâterm uptrend. The daily chart is also printing a series of higherâhighs and higherâlows, indicating that the bullish momentum is still intact.
Volume: The earningsâdriven rally was accompanied by a 2.3Ă volume surge versus the 20âday average, confirming the move on strong participation rather than a thin, speculative bounce. The elevated volume has persisted through the first two postârelease sessions, suggesting institutional buying rather than a oneâoff retail flareâup.
Relative Strength Index (RSI) & momentum: RSI on the 1âday chart is currently at 62, still in the bullish zone but well below the overâbought threshold of 70, leaving room for further upside. The MACD histogram has turned positive and is expanding, reinforcing the bullish momentum.
Trading implication: The confluence of a price break above the 20âday SMA, robust volume, and a stillâmoderate RSI points to a potential continuation of the upâmove over the next 5â10 trading days. A prudent entry on a pullâback to the 20âday SMA (ââŻ$1,080) with a stop just below the 50âday SMA (ââŻ$1,045) would capture the upside while limiting downside risk. If the price breaches $1,120 and RSI pushes toward 70, a shortâterm profitâtaking or tightening of stops would be advisable.