Huntington Bancshares Rises 3.66% as Bullish Technical Setup Suggests Short-Term Rebound

Huntington Bancshares (HBAN) Technical Analysis

Huntington Bancshares (HBAN) closed the most recent session with a 3.66% gain, suggesting a potential short-term reversal in momentum. The candlestick pattern over the past week indicates a bullish setup, with the price forming a higher low and higher high compared to the preceding consolidation phase. Key support levels are evident at $15.27 (2025-11-20 close) and $15.14 (2025-11-18 low), while resistance is forming at $15.685 (2025-11-20 high) and $15.78 (2025-11-14 high). A break above $15.78 could signal a resumption of the prior uptrend, while a retest of $15.27 may confirm its role as a psychological floor.

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Candlestick Theory

The recent price action aligns with a "bullish engulfing" pattern, where the 2025-11-21 candle’s body fully engulfs the preceding bearish candle. This suggests a shift in sentiment from sellers to buyers. Additionally, the formation of a "piercing line" on 2025-11-17 (a sharp drop followed by a recovery to 50% of the prior candle’s range) further reinforces the potential for a short-term rebound. However, the absence of a long lower shadow on the most recent bullish candle may limit the strength of this signal, indicating some lingering bearish pressure.

Moving Average Theory

The 50-day moving average (calculated from the 2025-11-21 close) is at $15.72, while the 200-day MA sits at $16.10. The 50-day MA crossing above the 200-day MA in late October marked a golden cross, signaling a potential long-term bullish trend. However, the current price of $15.88 remains below both averages, suggesting the stock is still in a consolidation phase. The 100-day MA at $15.65 provides a critical support line; a break below this could trigger a test of the 200-day MA as a dynamic floor.

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MACD & KDJ Indicators

The MACD histogram has turned positive in the last two sessions, aligning with the recent price rebound. A golden cross in the MACD line (12-day EMA crossing above the 26-day EMA) occurred on 2025-11-21, reinforcing the bullish case. The KDJ indicator (Stochastic oscillator) shows %K at 65 and %D at 58, indicating the stock is approaching overbought territory but not yet at critical levels. Divergence between the KDJ and price action is minimal, suggesting alignment between momentum and price.

Bollinger Bands

Volatility has expanded in recent sessions, with the Bollinger Bands widening from a 1.5% range to 3.5%. The current price of $15.88 sits near the upper band, suggesting overbought conditions. A reversal below the 20-day moving average (approximately $15.50) could trigger a contraction in volatility and a pullback toward the lower band at $15.30. The 20-day volatility contraction observed in early November may act as a key reference point for potential mean reversion.

Volume-Price Relationship

Trading volume on 2025-11-21 surged to 33.19 million shares, a 15% increase from the prior day. This surge validates the recent price rebound but does not confirm a sustainable trend reversal. The volume profile shows a "positive divergence" between the 2025-11-21 session and the preceding bearish candle, indicating strengthening buying pressure. However, the volume remains below the 40-day average of 28 million, suggesting the rally may lack broad participation.

Relative Strength Index (RSI)

The 14-day RSI has climbed to 62, approaching overbought territory but still within a neutral range. A break above 70 would signal a potential overbought condition, though historical data shows the RSI has frequently oscillated between 50 and 60 in recent months, indicating a sideways bias. The RSI’s alignment with the MACD golden cross creates a confluence of bullish signals, but traders should monitor for a divergence that could precede a pullback.

Fibonacci Retracement

Key Fibonacci levels derived from the 2025-04-09 high ($18.01) and 2025-02-24 low ($15.67) include 38.2% at $16.35 and 61.8% at $15.98. The current price of $15.88 is approaching the 61.8% retracement level, which could act as a short-term resistance. A breakout above $16.00 would target the 38.2% level, while a failure to hold above $15.98 may result in a retest of the 50% retracement level at $16.34.

Backtest Hypothesis

The backtest of a MACD golden cross strategy (buying on the signal line crossover and holding for 10 days) yielded a 10.05% return from 2022 to the present, outperforming the stock’s baseline performance but underperforming the NASDAQ Composite’s 25.93% gain. This suggests the strategy captures initial momentum effectively but lacks alignment with broader market trends. The 10-day holding period aligns with the RSI and MACD’s short-term signals but may miss extended rallies if the stock enters a sustained uptrend.

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