Nu Holdings Stock Surges 9.08% On Bullish Breakout Eyes 14.07 Resistance

Candlestick Theory
Nu Holdings recently formed a bullish engulfing pattern on August 15th (9.08% gain on high volume), breaking above the $13.00 resistance established in mid-July. The subsequent consolidation near $13.12–$13.75 defined a new support zone, with the August 20th close at $13.62 confirming resilience above this level. Key resistance now emerges at the July peak of $14.07, while the $12.77–$12.92 area (August 11th–18th lows) serves as major support. Recent price action suggests accumulation, but failure to breach $14.07 may trigger profit-taking.
Moving Average Theory
The 50-day moving average (13.15) crossed bullishly above the 100-day (12.98) in early August, signaling strengthening momentum. Both remain above the rising 200-day MA (12.40), confirming a long-term uptrend. The current price trading above all three averages reinforces bullish sentiment, though the 50-day MA must hold to prevent near-term weakness. Confluence support exists near $13.00, where the 50-day and 100-day MAs converge.
MACD & KDJ Indicators
The MACD histogram has remained positive since early August, with the signal line holding above zero, supporting the intermediate uptrend. However, KDJ shows overbought conditions (K: 82, D: 76, J: 94) as of August 20th, suggesting near-term exhaustion. Divergence is noted: while MACD maintains upward momentum, KDJ’s overextension hints at consolidation. Watch for KDJ crossovers below 80 to signal pullback opportunities toward $13.00–$13.20.
Bollinger Bands
Volatility expanded sharply during the August 15th breakout, with price surging above the upper band. The bands subsequently contracted as Nu consolidated between $13.12–$13.75, indicating equilibrium. Recent closes near the mid-band (20-day SMA at $13.35) imply neutral momentum. A sustained move above $13.75 would reactivate bullish volatility, while a breakdown below $13.12 could trigger band expansion downward.
Volume-Price Relationship
The August 15th rally occurred on 130M shares—the highest volume in three months—validating the breakout. Subsequent pullbacks saw diminishing volume, indicating limited selling pressure. The August 20th advance registered 82.9M shares (+3.81%), aligning with the 20-day volume average, confirming healthy participation. Elevated volume on up days versus down days since mid-August underscores accumulation.
Relative Strength Index (RSI)
The 14-day RSI (61) cooled from overbought territory (74 on August 15th) but remains in neutral-bullish range. This reset mitigates immediate reversal risks while preserving upside potential. Notably, RSI divergence occurred in late July when price hit $14.07 (RSI: 68) versus the August 20th high of $13.75 (RSI: 61), suggesting fading momentum. A break above RSI 65 would signal renewed strength.
Fibonacci Retracement
Applying Fibonacci to the swing low of $10.55 (April 21st) and high of $14.07 (July 17th), key retracement levels emerge: 23.6% ($13.30), 38.2% ($12.85), and 50% ($12.30). Recent consolidation respected the 23.6% level as support, reinforcing it as a critical bullish threshold. The 38.2% retracement aligns with the 100-day MA and July swing low ($12.77), creating a high-confidence support zone.
Confluence & Probabilistic Outlook
Confluence exists at $13.30–$13.35 (23.6% Fibonacci, 20-day SMA, and recent consolidation low), making it a pivotal support. Bullish consensus is evident across volume dynamics, moving averages, and Fibonacci levels, though overbought KDJ and RSI divergence warrant caution. Probabilistically, Nu may retest $14.07 resistance in the near term, especially if volume surges on a breakout. However, failure to hold $13.30 could trigger a pullback toward $12.85 (38.2% Fib + 100-day MA).