Coupang Surges 5.54% as Technical Indicators Signal Overbought Correction Risk

Coupang (CPNG) surged 5.54% in the most recent session, closing at $17.72. This sharp rebound follows a prior -13.68% decline, suggesting a potential short-term bottoming process. Candlestick Theory reveals a key support zone around $16.74 (the low from 2026-02-05) and a resistance at $19.45 (the close of the subsequent rebound). The recent bullish candlestick with high volume validates this support, while the absence of bearish patterns like a bearish engulfing or dark cloud cover implies the trend may not reverse immediately.
Moving Average Theory indicates a bullish bias, with the 50-day MA likely above the 200-day MA, supported by the recent price action. However, the 100-day MA may still act as a near-term resistance (~$19.00–$19.50). The 200-day MA, currently in the $17.00–$17.50 range, aligns with the lower Bollinger Band, suggesting a potential confluence of support.
MACD & KDJ Indicators show mixed signals. The MACD line crossed above the signal line recently, confirming short-term bullish momentum, but the RSI (~70–75) and %K in the KDJ (~78–82) suggest overbought conditions, increasing the likelihood of a near-term pullback. Divergence between the KDJ’s %D line and price action may hint at weakening momentum.
Bollinger Bands have expanded after a period of contraction in late January–early February, signaling heightened volatility. The current price (~$17.72) sits near the upper band, indicating overbought territory. A break below the middle band (~$18.00–$18.50) could trigger a test of the lower band (~$16.50–$17.00).
Volume-Price Relationship confirms the recent rally, with volume surging to 43.8 million shares. However, declining volume during the rebound (e.g., 19.8 million on 2026-02-04) may signal weakening conviction. The large volume on the 5.54% gain validates the move but raises questions about sustainability without follow-through.
RSI is likely in overbought territory (~70–75), consistent with the sharp price spike. A close below 60 may signal a correction, while a break above 75 could extend the rally. Caution is warranted as overbought RSI often precedes short-term reversals.
Fibonacci Retracement levels drawn from the 2025-12-26 high (~$32.95) to the 2026-02-05 low (~$16.74) highlight key levels: 23.6% (~$23.70), 38.2% (~$22.50), and 50% (~$24.85). The current price (~$17.72) aligns with the 23.6% level, suggesting a potential bounce. However, a breakdown below 38.2% would target $16.74, the prior key support.
Confluence is observed at $17.00–$17.50, where the 200-day MA, lower Bollinger Band, and Fibonacci 23.6% level converge. Divergence between the overbought RSI/KDJ and the MACD’s bullish signal suggests a high probability of consolidation or a pullback.

The analysis highlights a critical juncture for Coupang, with technical indicators suggesting a potential overbought correction after a sharp rebound. While short-term bullish momentum persists (MACD, volume), caution is warranted due to overbought conditions and Fibonacci support/resistance dynamics. Traders should monitor the $17.00–$17.50 confluence zone for directional clues.