Resmed (RMD): A big base still possible

We highlighted ResMed (RMD) as a bullish setup in the October 8 edition of The Stock Pulse, but the stock has since failed to hold the neckline of its bullish head-and-shoulders breakout. The late-October breakdown below 262 negated that pattern (see Chart 1). However, a big basing pattern remains possible despite this failed breakout, and this potential base looks even bigger than the one previously highlighted.

Key Support: Fibonacci Retracement Zone

RMD dipped below its rising 26- and 40-week moving averages (WMAs), which puts the longer-term bullish trend under pressure. Even so, the stock is holding an important support band at the 50%–61.8% retracement of the April–August rally from 247 to 235.

This zone has contained the decline so far, and today’s low at 237.63, along with the late-October low at 239.41, may form a tactical double bottom if the stock stabilizes.

Here's what must happen to reclaim the bullish trend

To restore a bullish posture, RMD must retake the rising 26- and 40-WMAs from 253–264

A move back above these levels would support a “bend-but-not-break” interpretation of the longer-term uptrend that began in late 2023.

Major resistance ahead

The August 2025 and September 2021 peaks at 293–301 marks big resistance for RMD.

A decisive breakout above this band is required to unlock the longer-term pattern count toward 455 (see Chart 2).

Bottom Line

• Holding 247–235 keeps the larger basing structure viable and suggests downside stabilization.

• A move above 253–265 would improve confidence that RMD is turning higher within this base.

• Breaking 293–301 remains the long-term bullish trigger for a potential advance toward 455.

• We would view a failure to hold 247-235 as bearish with risk to the 200-week moving average at 220-219.

Chart 1: Resmed (RMD): Invalidated bullish head and shoulders pattern

Chart 2: Resmed (RMD): A potential bigger base

One risk for RMD is a challenging trend relative to the S&P 500, but the stock has stabilized vs. the broader market since late October.

Chart 3: RMD relative to the S&P 500