Figma Stock Jumps 7.39% to $56.96 on Heavy Volume as Technicals Signal Bullish Momentum

Figma (FIG) demonstrated significant bullish momentum in its most recent trading session, surging 7.39% to close at $56.96. This advance marks the third consecutive day of gains, resulting in a cumulative 13.24% increase over this period. Trading activity intensified considerably, with volume reaching 27.68 million shares, substantially exceeding recent averages.
Candlestick Theory
The latest candlestick exhibits an extended lower shadow ($51.10 low) and a close near session highs ($56.96), forming a Hammer-like pattern after testing the critical $50-$51 support zone established on September 10-11 and October 1. This rejection of lower prices signals buyer conviction. The three-day rally comprises progressively higher highs/lows, indicating strengthening bullish control. Immediate resistance lies at the session's $61.75 high, with secondary resistance near $68.13 (September 3 high). Sustained closes above $61.75 may trigger further upside toward the $70-$72 resistance area. Downside support remains firm at $50-$51.
Moving Average Theory
Price currently trades above the 20-day moving average (~$55.00), reflecting improving short-term momentum. However, it remains below the 50-day moving average (~$68.00), signaling persistent intermediate-term bearish pressure. The 20-day/50-day negative alignment reinforces the broader downtrend structure established from August highs. A bullish crossover would require sustained trading above $60 to confirm trend reversal potential. The recent ascent from oversold territory near $50 shows initial strength but requires further confirmation against longer-term averages.
MACD & KDJ Indicators
MACD shows a developing bullish crossover as the signal line converges with the MACD line, coinciding with rising histogram bars—suggesting accelerating upward momentum. KDJ oscillators support this view: The %K line (currently near 65) recently crossed above %D in oversold territory (<30) on October 2, validating the rally’s commencement. Both indicators exhibit positive convergence with price action, though they approach overbought thresholds without yet signaling exhaustion. This alignment suggests near-term upside continuity remains probable.
Bollinger Bands
The pronounced band expansion on October 6 (61.75 high to 51.10 low) reflects a volatility surge after the prior month’s contraction (evident in narrowing September bands). Price closed within the upper band’s confines despite testing its limit intraday, indicating controlled breakout momentum rather than irrational exuberance. The expansion suggests directional conviction, but a close above the upper band would have heightened reversal risks. Traders should monitor whether bands continue widening to validate trend sustainability.
Volume-Price Relationship
The rally’s credibility is bolstered by robust volume confirmation: Session volume on October 6 (27.68M shares) tripled the 50-day average and exceeded the preceding two sessions combined. This climax volume punctuated the breakout from the $50-$59 consolidation range, indicating strong institutional participation. The three-day cumulative volume profile shows ascending volume alongside ascending prices—a hallmark of healthy accumulation. Such volume conviction notably contrasts with the high-volume capitulation sell-off observed on September 4.
Relative Strength Index (RSI)
The 14-day RSI (approximately 56) resides in neutral territory, ascending from oversold levels near 30 during early October. While indicating building momentum, the absence of overbought conditions (>70) leaves room for additional upside before technical exhaustion becomes a concern. However, traders should note that RSI’s warning utility diminishes during strong trending phases—momentum could persist even after exceeding 70. Current levels suggest balanced buyer/seller equilibrium.
Fibonacci Retracement
The primary Fibonacci grid drawn from the August 1 peak ($142.92) to the October 1 trough ($49.53) reveals critical levels: The 23.6% retracement ($71.56) aligns with the July/August breakdown point and represents the next significant resistance. The recent rally’s 61.8% retracement level ($61.75) was tested intraday on October 6 but rejected decisively. Confluence exists at the psychological $70-$72 zone (23.6% Fib + August 28-29 highs), presenting a logical profit-taking target should the rally extend. Downside support holds near the $49.53 trough, a critical level that must remain intact to preserve the recovery structure.
Confluence & Divergence Observations
Notable confluence exists at the $50-$51 support zone, reinforced by historical price reactions, volume validation during the rebound, and oversold KDJ readings. Divergences remain limited, though RSI’s neutrality amid aggressive gains warrants monitoring for potential bearish divergence if momentum stalls near $62 without overbought signals. The simultaneous MACD bullish crossover, KJD upturn, and volume surge create a robust signal cluster supporting short-term bullish continuation.
Probabilistic Conclusion
Current technical evidence suggests Figma’s recovery phase has further room to extend toward the $62-$63 range, with a probable test of the $71-72 confluence zone achievable if volume persists. However, the stock must overcome the critical 50-day MA resistance near $68 to signal a material trend reversal. Given intermediate moving averages’ bearish alignment and the primary downtrend context, this rally may initially represent a counter-trend bounce. Traders should watch for weakness below $55 (20-day MA) as an early exit signal, while a breakdown under $49.53 would invalidate the recovery thesis entirely.