Block Shares Surge 4.58% to $69.03 Amid Bullish Technical Breakout

Block shares gained 4.58% in the most recent trading session, closing at $69.03 after fluctuating between $66.26 and $69.10 on elevated volume. This price action occurs within a broader technical context that warrants multi-indicator assessment.
Candlestick Theory
Recent sessions show significant candlestick developments. The July 11th session formed a long red candle with a $68.56 high and $65.14 close, establishing resistance near $68.50. This was followed by a hammer pattern on July 14th (low: $66.40, close: $68.68), which preceded the current bullish momentum. The July 16th white candle breaking above $68.50 resistance suggests bullish conviction, with next resistance near the July 8th swing high of $70.98. Key support now resides at $66.26 (recent swing low).
Moving Average Theory
The 50-day moving average ($62.80) crossed bullishly above the 200-day MA ($59.20) in late June, confirming a long-term trend reversal. Price currently trades above all three key MAs (50/100/200-day), with the 50-day MA ($64.10) providing dynamic support during pullbacks. The ascending 100-day MA ($61.50) reinforces the bullish intermediate trend. However, the distance between price and the 50-day MA suggests potential consolidation near-term.
MACD & KDJ Indicators
MACD histogram shows diminishing bearish momentum, with the signal line convergence suggesting potential bullish crossover imminence. KDJ presents a bullish stance with the %K line (76) above %D (70), though approaching overbought territory. The J-line reading of 88 warrants caution as it signals stretched momentum. Both oscillators lack clear divergence from price, supporting the current uptrend's integrity.
Bollinger Bands
Bands are expanding after the July 11th contraction, reflecting increased volatility. Price trades near the upper band ($69.80), indicating short-term overextension. Bandwidth expansion historically preceded significant moves in this security – the current widening supports continuation potential, though mean reversion toward the 20-period SMA ($67.10) remains possible.
Volume-Price Relationship
Recent gains show questionable volume confirmation. The 4.58% advance occurred on 8.20M shares – higher than the prior session but below the July 14th 11.13M volume surge. Notable accumulation occurred during the May-June base formation near $50-$60, supporting the uptrend. However, dwindling volume during the current leg higher since June raises sustainability concerns.
Relative Strength Index (RSI)
The 14-day RSI reads 62, rebounding sharply from oversold (33) in late June but not yet overbought. This positions Block with room for additional upside before reaching the 70 threshold. The RSI's higher low in June versus price's higher low signals positive momentum divergence that foreshadowed the current rally. Neutral current readings suggest balanced buying pressure.
Fibonacci Retracement
Applying Fib levels between the April low ($45.65) and February high ($93.75) reveals significant confluences. The 61.8% retracement ($73.20) aligns with March swing highs, creating a logical next resistance target. Current price action approaches the 50% level ($69.70), which corresponds with recent highs. The 38.2% retracement ($66.20) coincides with the July swing low, strengthening its support validity.
Confluence & Divergence Observations
Confluence exists at $66.20-$66.30 (Fib 38.2%, recent swing low, rising 50-day MA), making it critical support. Resistance confluence appears at $69.70-$70.00 (50% Fib, psychological level). The primary divergence occurs between price making higher highs and volume making lower highs since early July, suggesting weakening participation. MACD/KDJ/RSI momentum consensus supports continuation, but volume divergence and proximity to Bollinger resistance warrant vigilance for consolidation near $70.