Figma Stock Surges 7.39% as Technical Indicators Signal Bullish Reversal Momentum

Candlestick Theory
Figma's recent candlestick pattern demonstrates bullish momentum, with three consecutive higher closes culminating in a 7.39% surge on October 6, 2025, reflecting strong buying pressure. The long green candle on this session, following a hammer pattern near $50.30 on October 1, signals robust rejection of lower prices. Key resistance is established at $61.75 (October 6 high), while support emerges at $51.10 (same session’s low). The $50.30-$51.10 zone now acts as a critical support cluster, reinforced by the September 11 swing low of $51.04.
Moving Average Theory
The 50-day moving average (MA) slopes downward near $64.50, reflecting prevailing intermediate-term bearishness, though price remains below this level. However, the current rebound has lifted Figma above its 10-day and 20-day MAs, suggesting nascent short-term bullish momentum. A sustained break above the 50-day MA would be required to signal trend reversal potential. The widening gap between shorter-term MAs and the 100/200-day MAs (latter near $75-$80) underscores residual overhead supply from the August downtrend.
MACD & KDJ Indicators
MACD histogram bars have transitioned to positive territory for the first time since early September, with the signal line crossing above the MACD line on October 2, indicating accelerating upward momentum. Concurrently, the KDJ oscillator exited oversold territory (K-line at 22 on September 30) and now shows K > D > 50, confirming bullish momentum alignment. The MACD crossover near the zero-line baseline adds weight to reversal potential. No divergence is noted between these oscillators.
Bollinger Bands
Bollinger Bands contracted sharply to a 10-month low width in late September, signaling extreme volatility compression preceding the current breakout. Price has surged from the lower band near $50 to pierce the middle band (20-day SMA ~$55), targeting the upper band near $62. This expansion suggests renewed directional conviction. Bandwidth remains below its August peak, however, indicating that volatility normalization may still be underway.
Volume-Price Relationship
The October 6 rally occurred on 24.8M shares—the highest volume in three weeks—validating buyer commitment. This follows a volume crescendo during the August downtrend, including a capitulation spike of 56.4M shares on August 4. Recent volume trends align with price recovery, with rising volume on up days (e.g., October 6, September 18) versus lower activity during pullbacks, supporting sustainability. The 3-day cumulative volume of 46.3M shares during the 13.24% advance underscores accumulation.
Relative Strength Index (RSI)
The 14-day RSI has rebounded from oversold levels (29.3 on October 1) to 58.2 as of October 6, crossing above the 50 midline—a bullish development. While not yet overbought, its trajectory suggests strengthening momentum. This move coincides with price breaking above the descending September trendline. Traders should note that RSI alone does not guarantee trend reversal; confirmation via volume and MA structure remains essential.
Fibonacci Retracement
Applying Fibonacci levels to the decline from $124.63 (July 31 high) to $49.53 (October 1 low), the 23.6% retracement at $67.20 aligns with the September 19-22 consolidation zone. More critically, the 38.2% level at $78.05 converges with the 100-day MA and the August 15 swing high of $79.42, creating a major resistance cluster. Current resistance near $61.75 represents initial recovery hurdles before testing the 23.6% level. Confluence between Fibonacci and moving averages at $67-$78 creates a high-probability reversal zone should the rebound extend.
Confluence and Divergence Observations
Notable confluence exists in the $67-$78 resistance band, where Fibonacci, moving averages, and the August-September price structure converge. Bullish consensus appears via MACD/KDJ momentum shifts, volume confirmation, and RSI recovery—all supporting short-term upside. A minor divergence emerged in late September when price undercut the August 11 low ($78.00) while RSI formed a higher low, foreshadowing the current rebound. However, the dominant bearish structure above $78 requires monitoring for false breakout risks.