On Holding Jumps 4.58% as Technical Indicators Signal Bullish Reversal Near $41 Support

On Holding (ONON) advanced 4.58% in the most recent session, closing at $43.62 after trading between $41.88 and $43.83 on above-average volume of 5.59 million shares. This price action occurs within a broader technical context summarized below.
Candlestick Theory
Recent sessions show a bullish reversal pattern emerging near the $41.40 support level. The 10/08 session formed a decisive white candle closing near its high, following a hammer candle on 10/02 ($40.90 low). These patterns suggest buyer conviction at the $41-$42 zone, establishing it as immediate support. Resistance is evident at $44.00, aligning with the 9/29 swing high ($43.67) and the 10/06 peak ($42.74). A confirmed break above $44.00 may signal continued upside.
Moving Average Theory
The 50-day SMA (approximately $46.00) remains above the 100-day SMA (~$48.50) and 200-day SMA (~$51.00), confirming a bearish long-term structure. Price trades below all three key moving averages, though the 10/08 close above the 5-day SMA (~$42.80) hints at near-term momentum stabilization. A bullish crossover would require sustained trading above the 50-day SMA, which currently appears distant.
MACD & KDJ Indicators
MACD shows a nascent bullish crossover, with its histogram turning positive on 10/08 – the first such signal since mid-September. Meanwhile, KDJ exited oversold territory (K: 25 → 65) during the rebound, with the %K line crossing above %D. While both oscillators signal improving momentum, their recoveries from oversold conditions lack confirmation from higher timeframes. This alignment suggests potential for further near-term upside but warrants caution absent stronger volume conviction.
Bollinger Bands
Bands contracted sharply in late September (width narrowing 25%), indicating reduced volatility and foreshadowing a directional move. Price rebounded from the lower band ($41.40) to challenge the upper band (~$43.80) on 10/08. A sustained break above the upper band, particularly on expanding volume, would signal renewed bullish volatility.
Volume-Price Relationship
Recent upside sessions (10/02: +3.42%, 10/08: +4.58%) featured volume 15-20% above their 10-day average, validating accumulation at support. Conversely, down days like 10/07 (-2.02%) saw below-average volume, suggesting limited seller conviction. The volume profile strengthens the case for $41.40 as a credible near-term floor.
Relative Strength Index (RSI)
The 14-day RSI rebounded from oversold (29.5 on 10/01) to 54 currently, reflecting improving momentum without reaching overbought. While consistent with near-term strength, divergence remains versus the longer-term downtrend – RSI has not exceeded 60 since early August. This implies the current advance may represent a technical bounce within a broader corrective phase.
Fibonacci Retracement
Applying Fib levels to the July–October decline (peak: $59.39 on 5/30, trough: $40.80 on 10/01) shows immediate resistance at the 23.6% retracement ($44.45). This converges with horizontal resistance at $44.00 and the 9/29 high ($43.67). The 38.2% level ($47.28) aligns with the 50-day SMA and September consolidation highs ($46.05-$46.56), creating a formidable resistance zone.
Confluence and Divergences
Confluence exists at $41.40 support, validated by candlestick patterns, volume dynamics, and Bollinger Band reactions. The $44.00-$44.45 resistance zone combines Fibonacci, price structure, and Bollinger Band boundaries. MACD and KDJ alignment supports near-term bullish momentum. A key divergence persists between RSI (failing to surpass 60 since August) and the current rebound, warranting vigilance for sustainability concerns. Should price clear $44.45 with expanding volume, the technical structure would signal potential extension toward $46.50-$47.30. Conversely, failure to hold $42.00 revisits the $41.00 support test.