Flex (FLEX) Surges 6.38% on Resistance Breakout and Bullish Technical Signals

Flex (FLEX) has surged 6.38% in the latest session, marking two consecutive days of gains with an 8.75% cumulative rise. The recent price action reflects a strong short-term upward momentum, supported by a breakout above prior resistance levels. This sets the stage for a deeper technical analysis across multiple frameworks to assess the sustainability and potential trajectory of the move.

Candlestick Theory

The recent two-day bullish pattern suggests a potential reversal or continuation of an uptrend, with the closing price of 63.98 surpassing a key resistance level observed at the 2026-02-03 high of 65.98. However, the prior session’s sharp 10.85% decline on 2026-02-04 created a psychological support at 57.74, which has been retested but not decisively broken. A bullish engulfing pattern on the latest two days, coupled with a rejection of the 2026-02-05 low of 57.74, indicates short-term strength. Key support levels to monitor include 60.145 (2026-02-05 close) and 58.83 (2026-02-04 close), while resistance remains at 65.98 and 66.185 (2026-02-03 high).

Moving Average Theory

The 50-day moving average (calculated from the 2025-11-13 to 2026-02-06 data) suggests a bullish crossover above the 100-day MA, reinforcing an intermediate-term uptrend. The 200-day MA, however, remains below the current price, indicating a long-term bullish bias but with potential for consolidation. The convergence of the 50-day and 100-day MAs near 62.5–63.0 suggests a critical threshold: a sustained close above this range would confirm momentum, while a pullback could test the 200-day MA as dynamic support.

MACD & KDJ Indicators

The MACD histogram has turned positive with a narrowing bearish divergence, aligning with the recent rally. A golden cross in the MACD line (above the signal line) suggests continued upward momentum, though the RSI’s overbought condition (discussed below) may limit immediate gains. The stochastic oscillator (KDJ) shows %K rising above %D, entering overbought territory, which typically signals caution for near-term reversals. However, the absence of bearish divergence between price and oscillator readings suggests the uptrend may persist in the short term.

Bollinger Bands

Volatility has expanded following the recent rally, with the price currently near the upper band (calculated from the 20-day standard deviation). This overbought position—coupled with a narrowing band contraction in early 2026—suggests a potential mean reversion or breakout. The middle band (20-day SMA) at ~62.0–63.0 acts as a dynamic support/resistance, and a sustained close above it would likely extend the current move.

Volume-Price Relationship
Trading volume has surged on the recent rally, with the latest session’s 5.5 million shares traded marking a 15% increase from the prior day. This validates the price strength but also raises the possibility of profit-taking. A divergence between declining volume and rising prices could signal waning momentum, though the current volume profile supports the move.

Relative Strength Index (RSI)

The RSI (14-period) has crossed into overbought territory (>70), suggesting a potential pullback. However, the recent sharp move has created a divergence between RSI and price action—RSI has not formed higher highs despite the price surge—hinting at exhaustion. A drop below 60 would likely trigger a correction, with 55–58 as probable support zones.

Fibonacci Retracement

Key retracement levels from the 2025-11-24 low (55.47) to the 2026-01-15 high (67.08) include 61.8% at 61.5 and 50% at 61.28. The current price of 63.98 suggests a potential overshoot, with the 78.6% retracement at 65.5 acting as a near-term resistance. A breakdown below 61.5 would invalidate the bullish case, targeting 55.47 as a deeper support.
Confluence of indicators—bullish engulfing candles, MACD crossover, and volume confirmation—strongly supports the continuation of the uptrend, though overbought RSI and Bollinger Band positioning caution against immediate extensions. Divergences between RSI and price, however, highlight a risk of a near-term correction. Traders should monitor the 62.0–63.0 zone for confluence of moving averages and Fibonacci levels, with a stop-loss below 58.83 to manage risk.