Fair Isaac Stock Surges 4.13% As Bullish Signals Converge Near Key $1,900 Resistance

Candlestick Theory
Fair Isaac's recent price action shows a bullish engulfing pattern on June 23rd ($1,794.24 low to $1,879.30 close), overpowering the prior session’s indecisive candle. This follows a hammer formation on June 18th (long lower wick at $1,760.87), signaling rejection of lower prices near the psychological $1,750 support. A key resistance zone emerges at $1,893–$1,900, capping multiple rallies in June. Sustained closes above this level could invalidate the near-term bearish structure established after May’s breakdown from the $2,200 peak.
Moving Average Theory
The 50-day MA (~$1,815) recently crossed above the 100-day MA (~$1,780), hinting at improving medium-term momentum. However, the 200-day MA (~$1,840) remains a formidable barrier, aligning with the $1,893–$1,900 resistance. Recent closes above the 50-day MA are encouraging, but failure to conquer the 200-day MA may prolong consolidation. The slope of the 200-day MA is flattening, reflecting weakening long-term trend strength since the May sell-off.
MACD & KDJ Indicators
MACD shows a bullish crossover (signal line crossed above MACD line) as of June 23rd, supported by rising histogram bars. This aligns with KDJ’s trajectory: the %K line (83) has pierced above %D (75) in overbought territory. While confirming short-term upside momentum, both indicators approach thresholds where pullbacks often occur. Divergence risk exists if prices stall near $1,900 without corresponding indicator highs.
Bollinger Bands
Bands contracted sharply during May’s volatility spike but are now expanding again as prices test the upper band (~$1,900). June’s rally from the lower band ($~1,740) reflects resurgence in bullish momentum. However, prices trading near the upper band alongside elevated RSI (see below) may signal short-term overextension. A band "squeeze" resolution to the upside requires volume confirmation.
Volume-Price Relationship
Volume surged during May’s breakdown (e.g., 1M shares on May 27th) but has been subdued during the June recovery. The recent 4.13% rally on June 23rd saw only modest volume (219k shares vs. 261k on June 20th), raising sustainability concerns. Notably, the rebound from the $1,619 low on May 28th occurred on high volume (736k shares), suggesting solid institutional interest at lower levels. For the uptrend to extend, volume must expand on breaks above $1,900.
Relative Strength Index (RSI)
The 14-day RSI (~68) approaches overbought territory (>70) after rising from oversold levels (<30) in late May. While momentum is recovering, RSI’s proximity to 70 may invite profit-taking near resistance. Bullish trend confirmation would require RSI to sustain above 60 during pullbacks. A bearish divergence would materialize if prices make new highs while RSI peaks lower.
Fibonacci Retracement
Applying Fib levels to the May plunge (peak: $2,206 on May 19; trough: $1,619 on May 28), key retracement zones emerge. The 38.2% level ($1,842) was breached recently, and the 50% level ($1,913) converges with the $1,900 resistance. The 61.8% retracement ($1,983) aligns with the March 2025 swing high. This cluster between $1,900–$1,983 presents a critical resistance band. Downside support rests at the 23.6% Fib level ($1,760), reinforced by the June 18th low.
Confluence and Divergence Summary
Confluence of bearish signals appears at $1,900–$1,913, where Bollinger Band resistance, the 50% Fib level, the 200-day MA, and prior price reversals converge. Bullish confluence exists at $1,750–$1,760, backed by volume-supported reversals and the 23.6% Fib level. A notable divergence lies in the sluggish recovery volume versus robust momentum oscillator readings, warranting caution. A decisive break above $1,913 with volume expansion may signal a retest of $2,000, while failure here could retest $1,760 support.