Coupang Jumps 8.96% On Heavy Volume As Technicals Signal Strong Bullish Momentum

Coupang (CPNG) concluded its most recent session with an 8.96% surge, marking a three-day winning streak that yielded an 11.19% cumulative gain, reflecting robust bullish momentum.
Candlestick Theory
Coupang’s price action reveals a bullish Three White Soldiers pattern over the last three sessions, characterized by consecutive higher closes and an extended third candle closing near its peak. The latest long white candle penetrated resistance near $30.00, converting it to support, while $31.79 now serves as immediate resistance. A prior consolidation zone between $28.18 and $28.99 established firm support, validated by the absence of lower shadows during the rally.
Moving Average Theory
The 50-day moving average (MA) hovers near $28.80, while the 100-day and 200-day MAs stabilize around $27.50 and $25.80, respectively. Coupang’s current price ($31.50) trades decisively above all three MAs, confirming a sustained uptrend. The 50-day MA’s upward slope since late August reinforces short-term bullishness, and the expanding distance between shorter and longer-term MAs signals strengthening momentum without immediate divergence concerns.
MACD & KDJ Indicators
MACD exhibits a bullish crossover, with its histogram expanding positively after a brief consolidation, indicating accelerating upward momentum. KDJ readings show %K (86) and %D (82) entrenched in overbought territory, historically preceding minor pullbacks. However, consecutive closes above the KDJ trigger line (78) suggest persistent buying pressure. While not yet divergent, these overbought conditions warrant vigilance for profit-taking near $32.00.
Bollinger Bands
Bollinger Bands diverged sharply during the 8.96% surge, with price breaching the upper band ($31.20) and closing above it—a sign of extreme near-term strength. This expansion follows a volatility contraction phase between August and September, where bands narrowed around $28.50. Such a breakout often precedes sustained directional moves, though a reversion toward the 20-day midline ($29.40) may occur if volatility normalizes.
Volume-Price Relationship
Volume surged 474% to 46.9 million shares during the rally, decisively validating the breakout. This contrasts with muted participation during the preceding consolidation, where sub-8 million shares traded. The volume spike aligns with the 11.19% three-day gain, confirming institutional accumulation. Declining volume on minor pullbacks (e.g., September 3rd’s -0.28% dip) further supports the uptrend’s sustainability.
Relative Strength Index (RSI)
The 14-day RSI registers 77, deep in overbought territory and mirroring early August’s peak before a 6% correction. Historically, RSI >75 has signaled temporary exhaustion for Coupang. While not divergent from price, this reading implies elevated near-term reversion risk. Traders should monitor for RSI retreat below 70 to gauge whether bullish momentum can absorb profit-taking without structural damage.
Fibonacci Retracement
Applying Fibonacci levels to the swing low of $28.18 (September 4th) and the recent high of $31.79 reveals key thresholds: the 23.6% retracement at $31.05, 38.2% at $30.65, and 61.8% at $30.00. The price closed above all retracement levels, demonstrating resilience. Longer-term Fibs drawn from the $20.06 April low place the 161.8% extension at $32.50—a plausible upside target.
Confluence emerges as moving averages, volume, and candlestick patterns unanimously validate bullish momentum, with the $30.00-$30.50 zone (former resistance, 61.8% Fib, and 50-day MA) acting as reinforced support. Divergence appears limited, though RSI and KDJ overbought extremes contrast with Bollinger Band expansion’s breakout implication. This suggests near-term consolidation is probable, but structural bullishness remains intact barring a close below $30.00.