Klarna (KLAR) Surges 5.04% as Three-Day Rally Lifts 9.35%, Technical Indicators Back Uptrend

Klarna (KLAR) has experienced a 5.04% increase in its most recent session, marking three consecutive days of gains with a cumulative 9.35% rise. This upward momentum suggests a potential short-term bullish bias, warranting a deeper examination of technical indicators to assess the sustainability and implications of this price action.

Candlestick Theory

Recent price action on KLAR exhibits a series of higher highs and higher lows, forming a bullish trendline. Key support levels are evident around $28.50–$29.00, where the stock has previously found buying interest after declines. Resistance appears to develop near $31.24 (the most recent closing high), with a potential next target at $32.33, a prior peak. A

engulfing pattern emerged on January 5, 2026, as the candle closed above the previous session’s high, reinforcing the likelihood of continued upward bias. However, a breakdown below $29.43 (the January 4 low) could invalidate this trend, suggesting caution for long positions.

Moving Average Theory

The 50-day moving average (approximately $31.00) currently sits above the 100-day ($30.50) and 200-day ($29.00) averages, forming a "golden cross" configuration that signals a medium-term bullish trend. The 200-day MA, a critical long-term support level, has held firm during recent corrections, such as the December 16–17 pullback. Short-term traders may note the 50-day MA acting as dynamic support, while the 200-day MA remains a key threshold to monitor for trend integrity. Convergence between the 50-day and 100-day MAs suggests momentum is accelerating, but a flattening of the 50-day MA could signal waning upward pressure.

MACD & KDJ Indicators

The MACD histogram has shown positive divergence in recent sessions, with the line crossing above the signal line on January 5–6, 2026, confirming bullish momentum. However, the RSI (discussed further below) approaching overbought territory may limit further gains. The KDJ stochastic oscillator indicates overbought conditions (K at 85, D at 75), suggesting a potential near-term pullback. While this could signal a short-term correction, the K line remains above the D line, which may delay an immediate reversal. A bearish crossover in the KDJ could act as a sell signal if accompanied by a rejection at $31.24 resistance.

Bollinger Bands
Volatility has expanded recently, with the upper band reaching $31.45 (January 7 close) and the lower band contracting to $28.25. The price currently trades near the upper band, indicating heightened volatility and a strong uptrend. A contraction in band width during the December 12–15 period preceded the January rally, suggesting a potential continuation pattern. If the price closes above the upper band, it may trigger a breakout trade, but a retest of the lower band ($28.43–$28.58) would be necessary to confirm trend strength.

Volume-Price Relationship

Trading volume has surged during the recent rally, particularly on January 5–7, with daily volumes exceeding 2.5 million shares. This volume expansion aligns with the price increase, validating the strength of the bullish move. However, a divergence between declining volume and rising price could signal weakening momentum. For example, the January 2–4 rally saw mixed volume trends, whereas the January 5–7 surge was accompanied by a 34% increase in volume, reinforcing the validity of the uptrend.

Relative Strength Index (RSI)

The RSI has reached 68–70 in recent sessions, indicating overbought conditions. While this typically warns of a potential pullback, the RSI’s failure to exceed 75 suggests a controlled advance rather than an unsustainable bubble. A drop below 60 would signal a return to neutral territory, but a sharp decline below 50 could indicate a shift in sentiment. Notably, the RSI has shown no significant divergence from price action, which supports the continuation of the uptrend.

Fibonacci Retracement

Key Fibonacci levels derived from the December 10–19 rally (high of $32.85 to low of $28.45) suggest critical support at $30.00 (61.8% retracement) and resistance at $31.50 (38.2% retracement). The current price near $31.24 aligns with this 38.2% level, which may act as a temporary cap. A break above $31.50 could target $32.33, a prior peak, while a breakdown below $30.00 would invalidate the near-term bullish case.
Confluence points between the 50-day MA, bullish candlestick patterns, and expanding Bollinger Bands reinforce the likelihood of continued upward momentum. However, divergences in the KDJ and RSI suggest a high probability of a short-term consolidation phase before the next leg higher. Traders should monitor the $31.24–$31.50 range for validation of the trend, while the 200-day MA remains a critical long-term support level.