Liberty Formula One Extends Rally With 5.71% Three-Day Gain As Technicals Signal Breakout

Liberty Formula One C (FWONK) advanced 3.34% in its latest session, extending its gains to a third consecutive day and bringing the cumulative three-day advance to 5.71%. This recent price action marks a significant breakout and warrants detailed technical scrutiny across multiple dimensions.
Candlestick Theory
Recent sessions exhibit strong bullish momentum. Following a Hammer pattern near $104 on October 3rd (long lower wick, small body), the stock broke above the $105-106 resistance zone. The latest large white candle closing near $108.33 confirms bullish conviction, establishing new support at $106.50 (prior resistance). Critical resistance now lies near the year-to-date high of ~$110, while a key support floor resides around the psychological $100 level, reinforced by multiple prior reversals.
Moving Average Theory
The 50-day SMA ($106.70) recently crossed above the 200-day SMA ($103.40), confirming a bullish Golden Cross formation. Price trades firmly above all three key MAs (50, 100, 200-day), indicating sustained upward momentum. The 50-day SMA now acts as dynamic support. Alignment below price across these timeframes signals a robust intermediate to long-term uptrend.
MACD & KDJ Indicators
The MACD (12,26,9) shows a bullish histogram expansion above the signal line, confirming accelerating upside momentum. The KDJ oscillator (9,3,3) resides near overbought territory with K=83.5 and D=81, suggesting near-term exhaustion risk. However, sustained K-line readings above 80 can persist during strong trends. No bearish divergences are evident currently.
Bollinger Bands
Price consistently tests the upper band ($108.60) after breaking above the 20-period midline ($105.30), signaling bullish pressure. Band expansion from September's contraction indicates rising volatility favoring continuation. Holding above $107 maintains upside bias, while a retreat below the midline would signal consolidation.
Volume-Price Relationship
Volume surged 19% during the October 6th breakout (1.31M shares vs. 3-month avg ~1.1M), validating the upside move. This follows higher-than-average volume on prior up days (Oct 2nd, 13th), confirming accumulation. Distribution signals are absent, as down days (like Oct 1st) occurred on relatively lower volume. Volume profile supports sustainability.
Relative Strength Index (RSI)
The 14-day RSI (67.8) approaches but remains below overbought thresholds, leaving room for further upside. It has not formed bearish divergences despite higher recent highs, indicating intact momentum. Traders should note that RSI may hover near 70 in strong trends, but sustained readings above 75 would heighten pullback probability.
Fibonacci Retracement
Applying Fib levels to the major March ($91.14) to June ($105.27) advance reveals key zones. The 38.2% retracement ($99.25) underpinned the August-September consolidation. A 50% level ($100.65) aligns with the 200-day SMA and offers strong support if tested. Current price exceeds the 76.4% retracement ($104.85), targeting a full recovery toward new highs.
Confluence & Divergence
Strong confluence exists near $106.50–$107 (50-day SMA + prior resistance + Bollinger midline). Another confluence zone at $100–$101 combines the psychological level, 200-day SMA, and Fib 50% retracement. The primary divergence noted is between near-overbought KDJ readings and the still-neutral RSI, suggesting momentum may cool before broader trend reversal. Overall, multiple indicators align to support continuation bias unless price breaches $106 decisively.