Fair Isaac Drops 3.29% as Bearish Engulfing Pattern Rejects 1600 Resistance

Fair Isaac (FICO) declined 3.29% in the latest session, closing at 1544.05 after trading between 1511.04 and 1593.29. This retreat follows a 4.33% advance in the prior session and occurs near the upper boundary of a multi-month trading range.
Candlestick Theory
Recent price action shows a bearish engulfing pattern formed on September 12th, as the session’s red candle completely submerged the previous day’s green body. This occurred near the psychological resistance of 1600 and the year-to-date high of 1598 from September 11th. Support is established at 1515–1511 (August 28th–September 4th swing lows), while resistance remains firm at 1593–1600, reinforced by the 2025 peak. The rejection near 1600 suggests sellers are defending this level.
Moving Average Theory
The 50-day moving average (approximately 1550) is converging with the 100-day average (near 1530), reflecting tightening consolidation. Price remains above the rising 200-day average (around 1400), confirming the broader uptrend. However, the recent close below the 50-day MA and flattening short-term averages signal near-term indecision. A sustained break below the 100-day MA would challenge bullish momentum.
MACD & KDJ Indicators
MACD lines crossed bearishly in early September near overbought territory, though the histogram shows moderating downward momentum. KDJ’s J-line (sensitive to reversal signals) retreated sharply from overbought (>90) to 60 after the latest decline, while the %K and %D are descending through neutral zones. This alignment suggests short-term bearish pressure, though no oversold confirmation yet.
Bollinger Bands
Volatility contraction is evident with bandwidth narrowing to 6% from 12% in July, indicating coiling price energy. The latest close near the middle band (20-period SMA at ~1547) follows repeated rejections at the upper band in late August and early September. This compression often precedes directional breaks; a close below the lower band (currently ~1490) would signal bearish momentum.
Volume-Price Relationship
The 3.29% decline occurred on 224k shares, below the 30-day average volume of ~280k, suggesting limited conviction. Notably, the preceding 4.33% rally saw 300k shares, indicating stronger buying interest. Distribution patterns emerged near 1590–1600, with elevated volume during August 29th and September 11th advances failing to sustain breakthroughs.
Relative Strength Index (RSI)
The 14-day RSI retreated to 52 after testing near 70 (overbought threshold) in early September. While current readings show neutral momentum, the failure to breach 70 during the September rally constitutes a bearish divergence against price. This warns of weakening upside momentum despite proximity to yearly highs.
Fibonacci Retracement
Applying Fib levels to the June–August decline (high: $1926.52 low: $1300) shows the recent rally stalled at the 78.6% retracement (~1589). The 61.8% level (~1555) now acts as resistance-turned-support after the latest close below it. A breach of the 50% retracement at 1520 may open downside toward the 38.2% level at 1480, aligning with August swing lows.
Confluence & Divergence
Confluence exists at 1520–1515, where Fibonacci support, the 100-day MA, and the July swing high converge. Bearish alignment appears in the MACD-KDJ bearish cross, RSI divergence near 1600 resistance, and volume-supported rejection at yearly highs. Notable divergence exists between Bollinger Band compression (implying imminent volatility) and moderating RSI/MACD momentum.
The technical posture suggests Fair Isaac is consolidating within a 1510–1600 range after failing to overcome key resistance. Near-term bias leans bearish following the engulfing candle and moving average breakdown, though the broader trend remains intact. A decisive break below 1510 would signal a deeper correction, while reclaiming 1575 is needed to revive bullish momentum.