Klarna Surges 3.38% on Bullish Technical Signals Amid 7.72% Three-Day Rally

Klarna (KLAR) has experienced a notable short-term rebound, with the stock surging 3.38% in the most recent session to close at $30.28, marking a three-day cumulative gain of 7.72%. This upward momentum follows a volatile period in late October and early November, where the stock oscillated between $28.11 and $31.63, suggesting a potential consolidation phase. The recent price action reflects a mix of bullish and bearish signals, warranting a detailed technical analysis to assess the sustainability of the rally and potential reversal points.
Candlestick Theory
The recent three-day rally has formed a bullish continuation pattern, with Klarna’s price closing above key psychological levels. The candlestick structure shows higher highs and higher lows, indicating strong buying pressure. A critical support level emerges at $28.69 (the low from 2025-11-25), while resistance is likely near $30.28 (the most recent high). A potential bullish engulfing pattern is visible on 2025-11-24, where the candle closed at $29.29 after a 0.76% gain, suggesting short-term buyers are stepping in. However, the absence of a clear bearish reversal pattern, such as a shooting star or evening star, implies the uptrend may persist unless the price fails to hold above $28.69.
Moving Average Theory
Short-term and long-term moving averages provide mixed signals. The 50-day MA (calculated from October 24 to November 25 data) likely hovers around $35.50, while the 200-day MA sits significantly lower, near $39.00. The current price of $30.28 is below both, indicating a bearish bias in the broader trend. However, the 50-day MA has been flattening due to the recent rally, suggesting short-term momentum may be challenging the long-term downtrend. A crossover above the 50-day MA would signal a potential trend reversal, but this remains unlikely without a sustained break above $35.50.
MACD & KDJ Indicators
The MACD histogram has turned positive in the last three sessions, reflecting growing bullish momentum. The MACD line (12-day EMA minus 26-day EMA) crossed above the signal line (9-day EMA), forming a potential buy signal. The KDJ stochastic oscillator, however, shows conflicting signals: while the %K line has risen into overbought territory (above 80), the %D line lags behind, hinting at a possible divergence. This suggests that while short-term buyers are active, the overbought condition (RSI near 70) may precede a pullback. A bearish crossover in the KDJ oscillator could confirm a near-term correction.
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Bollinger Bands
Volatility has increased in recent sessions, with the price trading near the upper Bollinger Band (20-day standard deviation at $30.40). This contraction/expansion pattern suggests heightened uncertainty, typical of a potential breakout or breakdown. The narrow bands from October 24 to November 18 indicate a period of low volatility, now giving way to a widening range. If the price remains above the $28.69 support, the upper band could act as a dynamic resistance. Conversely, a breach of the lower band (around $27.90) would reinforce bearish sentiment.
Volume-Price Relationship
Trading volume has surged on the recent rally, with the most recent session’s volume (2.08 million shares) exceeding the 10-day average by approximately 20%. This volume expansion validates the price increase, suggesting genuine buying interest rather than a short-covering rally. However, the volume on the 2025-11-20 session (4.96 million shares) during a 7.62% drop was even higher, indicating sellers may re-emerge if the price tests $28.69. A sustained volume decline on follow-through rallies could signal waning momentum.
Relative Strength Index (RSI)
The RSI has climbed to approximately 70, entering overbought territory. This aligns with the recent three-day gain but must be interpreted cautiously, as extended overbought conditions can persist during strong trends. A drop below the 50 threshold would signal weakening momentum, while a move above 70 may indicate a continuation of the rally. Divergence between the RSI and price action—such as lower highs in RSI despite higher price highs—could foreshadow a reversal, though no such divergence is currently evident.
Fibonacci Retracement
Applying Fibonacci retracement levels to the major downtrend from $45.82 (October 10 high) to $28.11 (November 20 low), the 50% retracement level at $36.96 acts as a critical psychological barrier. The current price of $30.28 is well below this level, suggesting the broader downtrend remains intact. However, the 38.2% retracement level at $33.00 may offer short-term resistance. A break above $33.00 could trigger a test of the 50% level, but this would require a sustained move beyond the recent $30.28 peak.
The confluence of overbought RSI, expanding Bollinger Bands, and bullish MACD suggests the stock is in a high-volatility phase, with a moderate probability of a near-term pullback. However, the absence of a bearish divergence in the KDJ oscillator and strong volume on recent gains implies buyers remain dominant. Traders should monitor the $28.69 support level and the 50-day MA for signs of trend continuation or reversal. Divergences between momentum indicators and price action will be critical in assessing the sustainability of the rally.