Figma Shares Surge 14.21% as Technicals Signal Potential Reversal After Volatility

Figma (FIG) shares surged 14.21% in the most recent session to close at $90.32, marking a notable recovery after significant volatility. This analysis examines the technical structure using the provided five-day dataset, acknowledging inherent limitations due to the compressed timeframe while extracting meaningful patterns from available price action.
Candlestick Theory
The last three sessions reveal a potential reversal structure. August 4th-5th formed consecutive bearish candles, closing near session lows ($88.60 and $79.08 respectively), confirming strong selling pressure. The August 6th session established a hammer-like pattern—a $76.65 low followed by a close near the high ($90.32)—signalling capitulation and bullish reversal potential after the downtrend. Immediate resistance aligns with the August 6th high of $91.49, while critical support rests at $76.65 (recent swing low). Sustained closes above $91.49 are essential to validate bullish conviction.
Moving Average Theory
Given the truncated dataset, a conventional multi-period MA analysis is unfeasible. However, the 5-day SMA (calculated at $99.10) places the current close ($90.32) below this level, reflecting persistent near-term bearish pressure. The considerable gap between price and the SMA underscores recent downward momentum but may also signal potential mean-reversion energy if bullish follow-through emerges.
MACD & KDJ Indicators
Data constraints preclude standard MACD/KDJ calculations (typically requiring 14-26 periods). Nonetheless, the magnitude of the August 6th rebound (+14.21%) after oversold conditions suggests nascent positive momentum. Traders should monitor for consistency in upward price velocity to confirm a momentum shift, though the limited history warrants caution.
Bollinger Bands
Volatility expanded dramatically during this period, evidenced by the August 4th range ($88.60-$114.285) and August 6th swing low ($76.65). A rudimentary 5-day Bollinger calculation places the lower band near $65.84. The August 6th price recovery from below this band ($76.65) toward the middle band ($99.10) indicates a volatility contraction and potential stabilization. A close above $91.49 would reinforce a move toward the mean.
Volume-Price Relationship
Volume patterns corroborate key price movements. The sell-off on August 4th occurred on 39.7M shares—elevated but below August 1st’s 56.4M shares during the prior advance—suggesting weakening bearish conviction. The subsequent rebound on August 6th registered higher volume (28.6M) versus August 5th (25.6M), supporting the reversal’s credibility. This volume-backed recovery enhances confidence in the $76.65 support level.
Relative Strength Index (RSI)
Using a 4-period calculation (due to data limits), RSI approximates 34.21—near oversold territory but not critically (<30). This aligns with the hammer formation and recovery bounce. While not severely oversold, the conjunction with price reversal signals suggests waning bearish energy. A breach above 50 would signal strengthening momentum.
Fibonacci Retracement
Using the swing high of $142.92 (August 1st) and low of $76.65 (August 6th), key retracement levels emerge: 61.8% ($101.96), 50% ($109.79), and 38.2% ($117.61). Confluence exists near the 76.4% level ($92.29), aligning tightly with the August 6th high ($91.49). This zone presents critical resistance—a breakout here would target $101.96 (61.8% retracement). Conversely, failure to hold above $76.65 invalidates this setup.
Confluence and Divergence Observations
Multiple indicators converge around the $91.49–$92.29 resistance: the candlestick high, Bollinger mean-reversion target, and Fibonacci 76.4% level. Bullish volume confirmation and RSI positioning further reinforce this pivot zone. A breakout would imply technical recovery toward $102. Divergence is noted between extreme price volatility and volume (which moderated during declines), suggesting selling exhaustion. The absence of major bearish continuation signals despite the sharp drop supports the reversal narrative.
Conclusion
Figma’s technical posture shows tentative recovery signals after a steep correction. The hammer candle, volume-supported rebound, and RSI positioning near oversold levels suggest the $76.65 low may establish near-term support. Confluence at $91.49–$92.29 resistance is critical—upside clearance may catalyze a relief rally toward $101.96 (61.8% Fib). However, the compressed data timeframe necessitates confirmation via sustained closes above $91.49. Failure to overcome resistance could trigger retests of $79 support. Given the extreme volatility, risk management remains paramount.