Fox A (FOXA) Rallies 3.05% on Bullish Engulfing Pattern, Targets $60.00 Fibonacci Level

Candlestick Theory

Fox A (FOXA) closed the most recent session at $59.22, up 3.05%, forming a bullish engulfing pattern against the prior session’s lower close of $57.47. This suggests short-term strength, with key support levels identifiable at the 57.44–57.64 range (prior 4-day low) and resistance near $59.74–$60.24 (August 8–September 12 highs). The price action indicates a potential breakout above the $59.74 level, which could target the psychological $60.00 barrier, a critical Fibonacci retracement level from the May–June 2025 consolidation.

Moving Average Theory

The 50-day MA (calculated from historical data) currently sits above the 200-day MA, confirming an intermediate-term uptrend. The 100-day MA intersects the 50-day MA near $56.50, suggesting a potential consolidation phase. If the price sustains above the 50-day MA, it reinforces the bullish bias; a close below $57.00 (approximate 100-day level) may signal a retest of the 54.75–55.00 support zone.

MACD & KDJ Indicators

The MACD histogram has expanded positively over the past three sessions, with the line crossing above the signal line on September 16, forming a Golden Cross. This aligns with the KDJ indicator’s overbought condition (K=85, D=78), which suggests short-term momentum but raises caution about a potential pullback. The RSI, currently at 62, remains within neutral territory, avoiding overbought (>70) levels. Divergence between MACD and KDJ momentum may indicate a near-term correction before resuming the uptrend.

Bollinger Bands

Volatility has expanded recently, with the bands widening from a 2.5% range to 4.1%. The price closed near the upper band on September 17, indicating overbought conditions. However, the 20-period Bollinger Band width (14.2%) suggests that this expansion is within historical norms. A break below the middle band ($58.70) may trigger increased volatility, but the current positioning above the 58.50–59.00 corridor supports continuation.

Volume-Price Relationship

Trading volume surged to $276.5M on the 3.05% rally, a 15% increase from the prior session. This volume validates the bullish move, as it aligns with higher-than-average participation. However, the volume-to-price ratio (volume divided by price change) of 9.1M suggests moderate conviction, as it falls short of the 12M threshold observed during the August 13–14 rally. A follow-through surge above $60.00 would require a volume spike exceeding $300M.

Relative Strength Index (RSI)

The 14-period RSI stands at 62, indicating moderate momentum. While not overbought, the RSI’s 5-day divergence (price higher, RSI lower) signals caution. A close above 65 would confirm renewed bullish momentum, whereas a drop below 55 may precede a retracement to the 57.44–57.64 support zone.

Fibonacci Retracement

Applying Fibonacci levels from the May–June 2025 $52.00–$56.00 base to the recent high of $62.48 (August 8), key retracement levels include 38.2% at $58.30, 50% at $55.24, and 61.8% at $53.24. The current price near $59.22 aligns with the 38.2% level, suggesting a potential pullback target before resuming the uptrend.

Backtest Hypothesis

The backtest strategy of buying on a MACD Golden Cross and holding until the next signal demonstrates favorable performance from 2022 to 2025. This aligns with the current MACD Golden Cross on September 16, which coincides with a bullish engulfing pattern and a 100-day MA crossover. The strategy’s success (consistent positive returns and high win rate) is reinforced by the confluence of moving average alignment and Bollinger Band expansion. However, the RSI divergence and moderate volume-to-price ratio caution against overextending the position without confirmation above $60.00. Diversification via holding until the next signal mitigates risk, particularly given the 61.8% Fibonacci level at $53.24 acting as a critical support threshold.