Klarna (KLAR) Surges 6.21% in Session Two-Day Gain Hits 8.26% as Technical Indicators Signal Bullish Reversal

Klarna (KLAR) has surged 6.21% in the most recent session, marking two consecutive days of gains with a cumulative increase of 8.26% over the past two days. This sharp upward movement follows a volatile period, including a significant 4.54% decline on 2025-12-01, suggesting potential short-term momentum. The analysis below explores technical indicators to assess the stock’s current positioning and potential future direction.
Candlestick Theory
Recent candlestick patterns indicate a potential bullish reversal. The 12-01 session saw a sharp bearish candle (4.54% decline), followed by a strong bullish candle (6.21%) on 12-04, forming a bullish engulfing pattern. This suggests a shift in sentiment from bearish to bullish. Key support levels appear to be forming around $30.00 (12-03 low) and $29.90 (12-01 low), while resistance is evident at $32.87 (12-04 high). A break above $32.87 could target the next psychological level at $35.00, aligning with historical resistance from late October.
Moving Average Theory
Short-term and long-term trends diverge slightly. The 50-day moving average (calculated from historical data) is currently below the 100-day and 200-day averages, indicating a bearish intermediate trend. However, the recent price surge has brought the current closing price ($32.5) closer to the 50-day MA, suggesting a potential short-term upward correction. If the 50-day MA crosses above the 100-day MA in the coming weeks, it could signal a bullish trend reversal. The 200-day MA remains a critical benchmark; sustained above this level would reinforce long-term bullish momentum.
MACD & KDJ Indicators
The MACD histogram has shown a narrowing bearish divergence after the 12-01 decline, with the line crossing above the signal line on 12-04, indicating potential bullish momentum. The KDJ (stochastic oscillator) suggests overbought conditions, with %K and %D converging above 80 in recent sessions. While this may signal a near-term pullback, the alignment of MACD and KDJ divergence suggests that any correction could be shallow, with a high probability of resuming the upward trend if the 12-04 high ($32.87) holds.
Bollinger Bands
Volatility has increased sharply, as evidenced by the expansion of Bollinger Bands following the 12-01 selloff. The current price ($32.5) is approaching the upper band, indicating overbought territory. This confluence with the RSI and KDJ overbought signals suggests a high probability of a retracement to the middle band ($30.6–$31.00 range). A break below the lower band would signal renewed bearish momentum, but the recent bullish engulfing pattern implies such a move is less likely without a breakdown of key support levels.

Volume-Price Relationship
Trading volume has spiked in recent sessions, particularly on 12-04 (3.19 million shares) and 12-03 (1.42 million shares), validating the price surge. This volume surge aligns with the bullish engulfing pattern, reinforcing the likelihood of a sustained upward move. However, if volume declines in subsequent sessions while the price remains above $32.00, it could indicate waning momentum. The volume spike on 12-01 (2.66 million shares) during the 4.54% drop also highlights bearish conviction, creating a divergence that suggests the recent rally may lack broad-based demand.
Relative Strength Index (RSI)
The 14-day RSI has surged to 72, entering overbought territory. While this typically signals a potential pullback, the recent volume surge and bullish candlestick patterns suggest that the overbought condition may persist for several sessions. A drop below 60 would indicate weakening momentum, but a sustained close above 70 would confirm a strong bullish bias. The RSI’s alignment with Bollinger Bands and MACD divergence highlights a high-probability scenario of a short-term correction to the 60–65 RSI range before resuming the upward trend.
Fibonacci Retracement
Key Fibonacci levels derived from the October 9 high ($57.20) and November 18 low ($31.22) are critical. The 61.8% retracement level is at $43.00, while the 38.2% level is at $45.00. The current price ($32.5) is below the 50% retracement level ($44.21), suggesting that the recent rally could be part of a larger consolidation phase. A breakout above $45.00 would target the 61.8% level, but a failure to hold above $32.00 could see the price retest the 23.6% retracement level ($46.00).
In conclusion, Klarna’s recent price action suggests a high-probability bullish scenario in the short term, supported by confluence among candlestick patterns, MACD, and volume-volume relationships. However, overbought indicators (RSI, KDJ) and potential volatility expansion in Bollinger Bands imply caution for extended short-term gains. Divergences in volume and intermediate moving averages warrant monitoring for signs of weakening momentum.