Fair Isaac Plunges 14.87% In Two Days As Bearish Signals Intensify

Fair Isaac (FICO) declined 6.54% in the most recent session, closing at $1,591.73, marking the second consecutive day of losses with a cumulative 14.87% drop over two days. This sharp downturn signals heightened bearish momentum and warrants a comprehensive technical assessment across multiple frameworks.
Candlestick Theory
The current two-day plunge forms a decisive bearish engulfing pattern, with the July 9 candle completely overwhelming the prior session’s body. This development occurs after a shooting star candle on July 8 ($1,894.91 high → $1,703.17 close), which rejected the psychological $1,900 resistance level. Key support now emerges at $1,587 (July 9 low), while resistance solidifies near $1,850–$1,900, aligning with the May-June 2025 consolidation zone’s lower boundary.
Moving Average Theory
The 50-day moving average has decisively crossed below the 100-day MA, confirming a bearish trend shift. Current prices trade significantly beneath all key MAs ($1,650 50-day, $1,810 100-day, $1,750 200-day), reflecting strong downward momentum. The accelerated deviation from these averages indicates potential oversold conditions but lacks near-term reversal signals.
MACD & KDJ Indicators
MACD exhibits a deepening bearish crossover, with both histogram and signal line plunging below zero – the strongest negative momentum reading in six months. KDJ readings (K:12, D:18, J:5) are deeply oversold, though the J-line’s extreme sub-10 level cautions against immediate reversal expectations. Notably, KDJ shows mild positive divergence on the daily chart (higher lows against price’s lower lows), suggesting weakening bearish pressure that requires volume confirmation.
Bollinger Bands
The July 8–9 volatility explosion triggered a decisive break below the lower Bollinger Band ($1,680), reflecting panic selling. Bands are now expanding at the steepest rate since May’s 15% single-day decline, supporting continuation potential. A close back inside the bands ($1,680–$1,880 range) would signal stabilization, but current trajectory suggests retesting the $1,550–$1,580 monthly support zone.
Volume-Price Relationship
The recent sell-off saw surging volume (+137% above 30-day average), validating bearish conviction. However, volume on July 9 was 51% lower than July 8’s capitulation, suggesting exhaustion may be developing. The absence of high-volume rebound attempts remains concerning for recovery prospects near-term.
Relative Strength Index (RSI)
Daily RSI has plunged to 28, entering oversold territory. While historically such levels preceded rebounds (e.g., April 2025 recovery from RSI 30), the indicator’s steep descent from July’s neutral reading suggests it may overshoot further before recovering. Monthly RSI remains above 40, leaving room for additional downside.
Fibonacci Retracement
Applying Fibonacci levels to the May 20 high ($2,199.92) and July 9 low ($1,587.07) shows the 38.2% retracement at $1,830 acting as immediate resistance. More significantly, the 61.8% retracement aligns with $1,770, reinforcing the $1,780–$1,800 zone where the 100-day MA, psychological barrier, and Bollinger midpoint converge. This multi-indicator confluence makes $1,770–$1,800 a critical recovery hurdle.
Confluence & Divergence Synthesis
Multiple indicators agree on bearish dominance, with Bollinger expansion, MA alignment, and Fibonacci confirming $1,770–$1,800 as a critical resistance zone. The KDJ’s emerging positive divergence against MACD’s deepening bearish signal creates ambiguity, suggesting potential for a technical bounce near $1,550–$1,580 support but lacking confirmation for sustainable reversal. Volume divergence during the decline may signal exhaustion, though momentum oscillators warn against premature long entries.