Figma Jumps 9.60% to $55.96 as Technicals Signal Potential Trend Reversal

Figma closed at $55.96 with a significant 9.60% surge in the most recent session, establishing the $51.04 low as immediate support after recovering from the prior day's $50.815 base. This price action signals a potential shift in short-term momentum. The technical analysis incorporates these developments as follows.
Candlestick Theory
The recent 9.60% surge formed a robust bullish candle that fully engulfed the preceding session's body, indicating strong buying pressure after testing the psychological $50 support. This bullish engulfment pattern at the $51.04-50.49 support zone suggests potential reversal confirmation if followed through. Immediate resistance emerges at $57.35 (September 4 high), with secondary resistance near $65.57 (September 2 close). The breach above the minor swing high of $55.32 (September 8) reinforces near-term bullish intent.
Moving Average Theory
Using adapted periods (20-day for medium-term, 10-day for short-term), the 20-day MA sits at $66.66 while the 10-day MA is $59.75. Both remain above the current price ($55.96), confirming the dominant downtrend. However, the 10-day MA's slope has moderated, and the current price closed above its 5-day MA ($53.37) for the first time since early September. A sustained break above the 10-day MA would signal short-term trend improvement, though the 10/20-day bearish configuration (shorter below longer) underscores persistent medium-term pressure.
MACD & KDJ Indicators
The MACD histogram has shown diminishing bearish momentum despite new price lows – a notable divergence suggesting weakening selling pressure. Though the MACD line remains below the signal line, the separation has narrowed. KDJ parameters are emerging from deep oversold territory with %K likely crossing above %D, coinciding with the price rebound. These momentum oscillators collectively hint at a nascent recovery scenario, but require confirmation from MACD's zero-line crossover.
Bollinger Bands
The bands have contracted notably after September's volatility spike, with the 20-day band width narrowing from over 30% to approximately 15%. Price rebounded sharply from the lower band at $51.04 to close mid-band, indicating stabilization. Historically, Figma has demonstrated mean-reversion tendencies when trading below the midline ($66.66). A sustained break above $57.35 would target the $60.57 middle band, while the narrowing bands suggest impending volatility expansion.
Volume-Price Relationship
The surge occurred on significantly elevated volume (13.1M shares vs 10-day average 9.2M), validating the breakout. Prior high-volume declines (e.g., 29.3M shares on September 4's 19.92% drop) confirmed capitulation, while the recent rally volume resembles the accumulation pattern seen during the August 20 advance (8.6M shares +6.67%). Volume divergence is observed on retests of the $54 zone, with lower volume on failed breakouts preceding the high-volume surge.
Relative Strength Index
The 14-day RSI registered 29 – the first oversold reading below 30 during this downtrend – supporting the reversal thesis. This reading diverged positively from price, which made new lows while RSI held above its late-August trough. Notably, prior oversold bounces from 35-40 (August 21-22, August 25-27) were short-lived, but the current deeper oversold condition coincides with multiple bullish signals.
Fibonacci Retracement
Applying Fib levels to the dominant downtrend from the $142.92 high (July 31) to $51.04 low (September 11), key retracement resistance levels emerge at $72.72 (23.6%) and $86.14 (38.2%). The immediate price structure shows rejection at the 38.2% level ($86.14) in late August, validating its resistance strength. Current upside targets include the $57.35 swing high (61.8% of the recent minor downswing) ahead of the primary 23.6% Fib level at $72.72, which aligns with the 20-day MA.
Confluence & Divergence
Confluence appears at the $51-50.50 support zone, where Bollinger support, RSI oversold signals, bullish engulfment, and volume validation align. Divergence exists between MACD/RSI momentum indicators and price action – while Figma made new lows, oscillators showed weaker downside momentum. The $57.35-60.57 resistance band converges with multiple indicators: the middle Bollinger Band, Fib swing projections, and volume profile resistance. A confirmed breakout above this zone would establish higher probability for a sustained reversal targeting the 23.6% Fib level and 10-day MA confluence near $72.72.