Sony Stock Jumps 4.45% To $26.03 As Technical Indicators Signal Strong Bullish Momentum

Sony Group (SONY) rose 4.45% to close at $26.03 on August 7, 2025, marking two consecutive days of gains and a 6.11% advance over this period. This momentum creates a constructive technical backdrop for analysis.
Candlestick Theory
The most recent session formed a robust bullish candle closing near its high of $26.71 after bouncing from support at $25.85. This follows a hammer pattern on August 5 at $24.38, which established interim support. Resistance is evident at the year-to-date high of $26.88 from June, while congestion between $24.15-$24.53 now serves as support. The absence of upper shadows in the last two sessions signals sustained buying pressure.
Moving Average Theory
All key moving averages exhibit bullish alignment, with the 50-day ($24.80), 100-day ($24.30), and 200-day ($23.90) trending upward. The price remains well above these averages, confirming the established uptrend. The 50-day crossed above the 200-day (Golden Cross) in Q1 2025, providing a foundational bullish bias. Recent rebounds near the 50-day MA demonstrate its role as dynamic support.
MACD & KDJ Indicators
MACD (12,26,9) shows a rising histogram above its signal line, confirming accelerating positive momentum. KDJ’s %K (84) and %D (79) indicate overbought territory but without immediate bearish divergence. While KDJ readings suggest potential consolidation, the MACD’s bullish momentum alignment tempers reversal concerns. Both oscillators support the prevailing trend strength.
Bollinger Bands
The 20-day bands expanded during the 6.11% two-day advance, reflecting increasing volatility during the breakout. Price touched the upper band at $26.71 – a sign of strong upside momentum. Bandwidth expansion following the July 23 surge (+4.86%) indicates sustained directional conviction. Continued upper-band proximity signals near-term overbought conditions but within a robust trend structure.
Volume-Price Relationship
The breakout was validated by rising volume, with August 7 turnover (6.71 million shares) exceeding the 20-day average and showing 20% growth over August 6. Volume expanded consistently during advances since July 23, confirming accumulation. Distribution days (e.g., July 28’s -2.09% on below-average volume) lacked conviction, supporting the sustainability of the uptrend.
Relative Strength Index (RSI)
The 14-day RSI stands at 71, crossing into overbought territory. While this warrants monitoring, it remains below the extreme levels (e.g., 78 on July 23) seen during prior peaks. The RSI’s higher low in late July versus June’s peak, combined with ascending prices, shows no bearish divergence. History suggests such overbought conditions can persist for weeks during strong trends.
Fibonacci Retracement
Applying Fibonacci to the swing low of $17.60 (October 2024) and high of $26.88 (June 2025), key levels emerge. The 23.6% retracement ($24.69) supported the June pullback, while the 38.2% level ($23.34) aligns with the May consolidation zone. Current trading above the 23.6% level reinforces bullish control, with a clear path toward challenging the 100% extension at $26.88.
Confluence and Divergence Notes
Confluence exists at $24.69 (Fibonacci 23.6%, prior resistance from April, and the 50-day MA) where multiple indicators identified strong support. The volume-backed breakout through $25.85 resistance aligns with bullish MACD and moving average signals. A minor divergence exists between RSI overbought readings and persistent price strength, though this is mitigated by confirmation from volume and Bollinger Band expansion.