Futu Holdings Jumps 7.00% Extending 11.83% Two-Day Rally On Bullish Momentum

Futu Holdings (FUTU) recorded a robust 7.00% gain in the latest session, closing at $160.57. This extends a two-day rally of 11.83% on elevated volume of 6.48 million shares, signaling strong bullish momentum. The technical analysis below employs multiple frameworks to contextualize this move.
Candlestick Theory
Recent sessions display a bullish reversal pattern. The July 9th hammer candle at $142.40 (after a 9.09% surge) marked a pivot off the $130.53 support level (July 8th low). This was followed by two consecutive white marubozu candles (July 17-18), indicating sustained buying pressure. Immediate resistance is observed at $169.80 (July 18 high), while support consolidates near $154.60 (July 18 low), reinforcing a technical floor after the breakout.
Moving Average Theory
The short-term 50-day MA ($118.22) crossed bullishly above the 100-day MA ($108.71) in mid-June, establishing positive momentum. The current price ($160.57) trades notably above all key MAs (50/100/200-day), confirming a strong uptrend. The ascending 200-day MA ($92.40) further underpins the long-term bullish structure. However, the widening gap between price and the 50-day MA may indicate overextension.
MACD & KDJ Indicators
MACD (12,26,9) shows a strengthening bullish crossover since early July, with the histogram expanding to its highest level in three months. KDJ readings (K:86, D:82, J:94) have entered overbought territory (>80), typically preceding consolidation. While both oscillators confirm upward momentum, the KDJ's extreme reading suggests near-term exhaustion risk. No bearish divergence is present on either indicator.
Bollinger Bands
Price recently pierced the upper band ($159.20) during the July 18 breakout – a sign of strong directional momentum. The bands expanded 18% this week, reflecting heightened volatility after the July compression near $145. Historically, such expansions precede short-term pullbacks to test newly established support, with the middle band ($145.90) serving as a logical retracement target.
Volume-Price Relationship
The rally is validated by surging volume. The July 18 session recorded 6.48 million shares traded – 105% above the 30-day average – demonstrating conviction in the breakout. This follows above-average volume during the July 9th reversal candle. Volume divergence is absent, suggesting sustainable momentum. The volume-weighted average price (VWAP) since July 1 sits at $138.80, providing dynamic support.
Relative Strength Index (RSI)
The 14-day RSI reading of 79 signals overbought conditions, historically preceding 1-3 session consolidations in FUTU. While such high readings warrant caution, they can persist during strong uptrends. The current overbought status is more significant given RSI's rise from neutral (56) to extreme in just five sessions. This supports the probability of near-term consolidation, though not necessarily reversal.
Fibonacci Retracement
Applying Fib levels to the recent impulse wave from $130.53 (July 8 low) to $169.80 (July 18 high) shows immediate support at the 23.6% level ($161.20), closely aligned with current price. Key confluent support emerges at the 38.2% level ($155.80), coinciding with the July 18 low and volume cluster. A deeper retracement to the 50% level ($150.16) would align with the July 16 consolidation zone and 10-day moving average support.
Confluence & Divergence Observations
Notable confluence exists between technical supports: the 38.2% Fib level ($155.80), Bollinger middle band ($145.90), and VWAP ($138.80) create layered technical cushions. However, the RSI-Bollinger divergence warrants monitoring – while price prints new highs, RSI remains below its early July peak, suggesting slowing momentum. Volume validation counters this concern for now. Probabilistically, the weight of evidence favors continued upside following near-term consolidation, with critical support holding at $154.60.