FMX Shares Rise 0.99% to 100.29 Amid Bullish Technical Signals and Volume Decline

Mexican Economic Development (FMX) shares advanced 0.99% to close at 100.29 on July 17, 2025, extending gains to two consecutive sessions with a cumulative 2.11% rise amid reduced trading volume.
Candlestick Theory
Recent price action shows a bullish reversal pattern emerging near the 96.62 support level, formed by the July 17 low. The consecutive white candles on July 16–17 suggest buying pressure after a downtrend from the July 9 peak of 104.98. Key resistance is established at 101.73 (July 11 high), followed by the psychological 105.00 zone. Critical support holds at 96.62, with a breach potentially targeting 93.50.
Moving Average Theory
The 50-day SMA (approximately 102.50) is trending downward and positioned above the current price, indicating short-term bearish pressure. By contrast, the 100-day SMA (near 99.00) and 200-day SMA (around 97.00) slope upward, reflecting a resilient long-term uptrend. The price remains sandwiched between the bearish 50-day and supportive 100-day averages, with sustained trading above the 100-day SMA required to neutralize near-term weakness.
MACD & KDJ Indicators
The MACD demonstrates a bearish crossover below its signal line but shows signs of convergence as the histogram’s negative momentum eases. This suggests weakening downward pressure. Concurrently, the KDJ indicator’s %K line (approximately 35) is rising from oversold territory after recently testing the 30 threshold, though it remains below the %D line. While this hints at nascent recovery potential, neither oscillator yet confirms a decisive bullish reversal signal.
Bollinger Bands
Bollinger Bands have contracted by 15% over the past week, signaling diminished volatility and potential energy accumulation for a directional breakout. Price is currently testing the middle band (near 100.50), with a sustained break above potentially targeting the upper band at 103.50. The lower band at 97.50 offers immediate support.
Volume-Price Relationship
Volume declined 36% during the two-day rally compared to the preceding down days, casting doubt on the sustainability of the rebound. The July 16 advance occurred on above-average volume, but the follow-through on July 17 lacked conviction. A breakout above 101.73 would require amplified volume to confirm legitimacy.
Relative Strength Index (RSI)
The 14-day RSI (approximately 48) resides in neutral territory, recovering from a July 14 oversold reading of 28 but lacking momentum to reach overbought conditions. This aligns with a consolidation phase. While the RSI's higher low against price’s equal low on July 14–15 showed positive divergence, it warrants confirmation through price breaking above resistance.
Fibonacci Retracement
Applying Fibonacci levels to the June 6 high (107.06) and July 17 low (96.62), the 38.2% retracement at 100.61 aligns precisely with the July 17 close (100.29), creating a technical friction zone. A decisive close above 100.61 would open a path to the 50% retracement at 101.84. The 23.6% level at 99.08 now acts as support, while the 61.8% level at 102.90 presents the next resistance.
Confluence and Divergence Observations
A significant confluence of indicators materializes at 100.50–100.60, where the 38.2% Fibonacci level, Bollinger middle band, and psychological resistance converge. This zone is pivotal for near-term direction. However, the volume-price divergence during the rebound introduces caution. Divergence between the strengthening momentum oscillators (MACD, KDJ) and unconvincing volume persists, recommending vigilance for confirmation through either a high-volume breakout above 101.73 or breakdown below 96.62. The 100-day SMA and 23.6% Fibonacci level at 99.08 provide a critical support confluence.