Shinhan Financial Extends Gains 1.76% As Technicals Test Key 47.56 Resistance

Shinhan Financial Group (SHG) shares rose 0.15% in the most recent session, extending gains for the second consecutive day with a cumulative increase of 1.76%. This technical analysis evaluates SHG's price action across multiple indicators using approximately one year of historical data.
Candlestick Theory
Recent sessions show SHG testing resistance near 47.56, the June 2025 peak, which has capped price advances twice. The July 7 session formed a spinning top (46.25 low to 47.55 high, close at 46.36) following a bullish marubozu on July 3, suggesting indecision near resistance. Key support sits at 45.07 (July 2 low) and 44.17 (June 24 swing point). A decisive close above 47.56 would signal bullish continuation, while failure to hold 45.07 may trigger a retest of the 43.30 consolidation zone.
Moving Average Theory
The 50-day (43.80), 100-day (40.85), and 200-day (38.70) moving averages form a bullish alignment with shorter periods above longer ones. Price remains above all three averages, confirming the primary uptrend. Notably, the 50-DMA has acted as dynamic support during June pullbacks, while the 200-DMA's upward slope reinforces long-term bullish bias. The 50/100-DMA golden cross in May 2025 remains intact, though proximity to the 50-DMA warrants monitoring for potential mean reversion.
MACD & KDJ Indicators
MACD (12,26,9) shows a narrowing histogram despite price nearing resistance, indicating weakening bullish momentum. KDJ (9,3,3) resides at K:68/D:62/J:80 – approaching overbought territory but without divergence. While no bearish crossover is evident, the MACD momentum divergence suggests fading upside energy near the 47.56 resistance. KDJ's J-line exceeding 80 increases reversal probability if bearish candlestick confirmation emerges.
Bollinger Bands
Bands contracted sharply in late June (σ:1.2% vs. 2.8% YTD average) before the July breakout attempt. Price currently hugs the upper band (47.60), typically indicating strength, but RSI divergence questions sustainability. Band expansion during the July 1-3 rally supports directional conviction. A rejection from the upper band with expanding volatility could signal a short-term retracement toward the 20-period moving average (45.50 mid-band).
Volume-Price Relationship
The June 4 breakout (6.76% surge) occurred on 270k volume – the third highest YTD – validating upside momentum. However, the recent resistance test saw volume decline 69% compared to June's peak. This negative volume divergence undermines the breakout attempt. Downside moves in June showed lower volume than advances, suggesting distribution isn't dominant. Sustained upside requires volume expansion above 200k shares near 47.56.
Relative Strength Index
14-day RSI reads 58, in neutral territory after rebounding from 42 in late June. The indicator has consistently rejected overbought (>70) conditions since May 2025, forming lower highs against price's higher highs – a notable bearish divergence. While not oversold, this divergence implies fading bullish momentum. Failure to breach 70 during resistance tests increases corrective potential, though current levels don't indicate immediate reversal risk.
Fibonacci Retracement
Applying Fib levels to the 31.87 (March 2025 low) to 47.56 (June 2025 high) rally shows strong confluence. The 23.6% retracement (42.13) aligned with the June reaction low (42.43), while the 38.2% level (40.85) overlaps the 100-DMA. These technically significant zones now serve as major support. Resistance beyond 47.56 appears at 50.80 (127.2% extension) and 53.50 (161.8% extension).
Confluence & Divergence Synthesis
The 42.10-42.50 zone demonstrates high-confluence support, combining the 23.6% Fib level, 50-DMA, and Bollinger mid-band. Bearish divergences dominate resistance tests: RSI non-confirmation at 47.56, declining volume intensity, and MACD momentum fading. However, moving average alignment and Fib support levels underneath provide structural strength. A breakout above 47.56 with volume expansion would resolve bearish divergences, while failure could trigger a pullback toward 43.80 (50-DMA) before resuming the primary uptrend.