Equifax Jumps 5.98% as Technical Indicators Signal Strong Bullish Reversal

Equifax (EFX) surged 5.98% to $260.23 in the latest session, recovering sharply from an intraday low of $247 to close near the day's high of $262.37. This price action forms the basis for our multi-indicator technical analysis, synthesized as follows:
Candlestick Theory
The most recent session formed a robust bullish candle with a long lower wick, indicating strong rejection of prices below $247. This level now establishes critical short-term support, validated by multiple tests since late August. The candle's close near the session high signals bullish conviction. Resistance is evident at $262.37 (September 11 high), with additional resistance at $275.91 (July 8 peak). A near-term bullish reversal pattern emerged via the September 10-11 sequence, where the bullish candle fully eclipsed the prior session's bearish body.
Moving Average Theory
Short-term moving averages reflect trend ambiguity, with the price oscillating around the 50-day SMA (~$252). However, the long-term uptrend remains intact as the 200-day SMA (~$245) slopes upward beneath the price. The 100-day SMA (~$249) recently provided dynamic support during the September pullback. A bullish signal would strengthen if the price sustains above the 50-day SMA. The convergence of the 50/100-day SMAs suggests potential trend acceleration upon decisive breakout confirmation.
MACD & KDJ Indicators
MACD histogram shows improving momentum, with bearish pressure easing after the September 2 sell-off. The MACD line appears poised for a bullish crossover in negative territory, suggesting waning downside momentum. KDJ corroborates this shift, with the %K line crossing above %D from oversold levels (below 20) on September 11. This confluence signals strengthening bullish momentum, though confirmation requires a MACD centerline crossover.
Bollinger Bands
September’s volatility expansion is evidenced by the band width increasing 20% month-to-date as prices tested the lower band near $247. The sharp rebound from this band on September 11, coupled with a close near the middle band ($255), implies a potential mean-reversion move underway. A sustained break above the middle band could trigger a volatility squeeze targeting the upper band (~$270).
Volume-Price Relationship
The rebound was validated by volume, with September 11’s 1.15 million shares traded exceeding the 20-day average. This climactic volume during an upthrust signals accumulation after the capitulation event on September 2 (1.56 million shares). Volume divergence was noted during the late August sell-off, where declining prices saw lower volume, suggesting weak bearish conviction. Current volume-supported recovery enhances breakout credibility.
Relative Strength Index (RSI)
The 14-day RSI (~46) exited oversold territory after rebounding from 29 on September 2. Current neutral positioning allows room for further upside before overbought risks emerge. Bearishly, RSI formed a positive divergence during the late August sell-off as price made lower lows while RSI stabilized, foreshadowing the recent rebound. This divergence reinforces the significance of the $247 support.
Fibonacci Retracement
Applied to the recent downswing from $275.91 (July 8 high) to $233.74 (September 2 low):
- 38.2% level at $248.75 aligned with September 3-5 consolidation support
- 61.8% level at $259.98 was breached decisively on September 11 close ($260.23)
The decisive close above 61.8% retracement indicates strong bullish momentum, opening a path to test the 100% retracement at $275.91. Concurrently, the $247 low aligns with the 78.6% retracement from the April-July rally ($210.07-$275.91), creating a multi-frame Fibonacci support confluence.
Confluence & Divergence Synthesis
Convergence is pronounced at $247, validated by Bollinger Band support, Fibonacci 78.6% retracement, and volume-backed price rejection. The bullish KDJ crossover and MACD momentum recovery further strengthen this support. No significant bearish divergence exists currently, though RSI’s neutral stance tempers immediate upside expectations. The simultaneous breach of the 61.8% Fibonacci level and resistance at the 100-day SMA suggests high-probability continuation toward the $270-276 resistance zone. However, failed closes above $262.37 may trigger short-term consolidation near the 50-day SMA.