Block Stock Rises 3.23% to $76.95 as Technical Indicators Signal Bullish Continuation

Block (XYZ) advanced 3.23% in the most recent session, extending gains to two consecutive days with a cumulative 5.37% rise. The stock closed at $76.95 after trading between $74.76 and $77.06 on moderate volume. This follows a volatile period marked by an 8% intraday drop on August 8th and subsequent recovery, establishing a short-term bullish bias as technical indicators undergo reassessment.
Candlestick Theory
Recent price action shows a bullish reversal pattern emerging near the $73 support zone, which previously contained the August 8th sell-off. The August 11th hammer candle ($72.39 low) signaled exhaustion of downward momentum, confirmed by consecutive white bodies closing near session highs on August 12th-13th. Immediate resistance resides at $77.06 (recent high), with a decisive break potentially targeting the $82.50 peak from early August. The $73.20-$74.75 zone now constitutes critical support, having absorbed multiple tests since late July.
Moving Average Theory
The 50-day moving average ($68.20) maintains an upward slope above the 100-day ($63.80) and 200-day ($60.40), confirming the primary uptrend. However, short-term dynamics reveal tension as the price struggles to reclaim its 20-day average ($75.80) after August's volatility. The recent close at $76.95 narrowly exceeds this level, suggesting potential trend reassertion. Confluence appears at $72.30 where the 50-day converges with the August swing low, reinforcing that support zone's significance. A sustained break below would indicate intermediate trend deterioration.
MACD & KDJ Indicators
MACD shows bullish convergence developing near zero line territory: While the signal line triggered a sell signal during the early August decline, the histogram has now registered three consecutive rising bars as price rebounded. This positive divergence suggests waning downward momentum. Concurrently, the KDJ oscillator exited oversold territory (K-line: 28 → 65) on August 12th. With %K and %D lines now crossing upward below the 70 threshold, both momentum indicators align for potential upside continuation if MACD achieves a definitive crossover.
Bollinger Bands
Bands contracted sharply to 16% width during the consolidation between August 5th-11th, below the 30-day average bandwidth of 22%. The expansion initiated with the August 12th breakout now places price near the upper band ($77.50), indicating near-term overbought conditions. Historically, similar contractions (notably in early May and late June) preceded directional moves exceeding 15%. The current setup favors upside continuation if price maintains above the middle band (20-SMA at $75.80), which now acts as dynamic support.
Volume-Price Relationship
Distribution days marked the August 8th breakdown (228% above average volume), but subsequent recovery occurred on diminishing volume. The recent 5.37% two-day advance registered just 21% above mean volume, raising sustainability concerns. Notably, the July 22nd accumulation spike (139M shares) established a foundational support level at $78.20. For bullish confirmation, advancing phases require volume expansion, particularly at the $78.50-$80.50 resistance zone where volume cliffs from July exist.
Relative Strength Index (RSI)
The 14-day RSI (current: 58) rebounded from oversold territory (29.3 on August 11th) but remains below the overbought threshold. This mid-range reading offers flexibility for additional upside. Bearishly, August 8th's breakdown occurred without RSI entering overbought territory (peak RSI: 68), demonstrating the indicator's limitation in anticipating volatility events. The bullish inverse divergence between RSI's higher low (August 11th) and price's lower low warrants monitoring for confirmation.
Fibonacci Retracement
Applying Fibonacci to the primary uptrend from May lows ($45.02) to August peak ($82.50), key retracement levels emerge. The 38.2% retracement ($68.20) contained the early August pullback precisely. Confluence exists here with the 50-day moving average and the 61.8% extension level ($67.80) from prior minor swings. Current price hovers near the 23.6% retracement ($77.20), with the next significant resistance at the 0% level ($82.50). Downside markers cluster at $73.50 (50% retracement) where multiple technical elements converge.
Confluence exists at $73.20-$73.50, where Fibonacci, prior swing lows, and moving average support align – a break below would invalidate the short-term bullish thesis. Divergence appears between volume and price during the current recovery phase, warranting caution despite bullish momentum readings. The probabilistic outlook leans constructive above $75.80, with confirmation requiring decisive breaks above $77.06 on expanding volume to target $82.50 resistance.