Liberty Formula One A Surges 3.51% to 12-Month High on Bullish Momentum

Liberty Formula One A (FWONA) exhibits notable bullish momentum in its most recent session, gaining 3.51% to close at $92.01, marking its third consecutive daily gain for a cumulative 5.72% advance over this period. This push has taken the stock to new 12-month highs, signaling potential continuation of its broader uptrend. The technical assessment integrates multiple perspectives as follows:
Candlestick Theory
The three consecutive green candles confirm strong near-term bullish sentiment, with the June 18th session closing near its high ($92.01 vs. high of $92.085), suggesting sustained buying pressure. Significant resistance around $91.62 (the February peak) was decisively breached, converting it into new support. The next notable historical resistance appears near $95.33 (February high). A hammer pattern formed on June 13th (low at $86.88 close near $87.03 after rejecting lower prices), which preceded the current rally, indicating potential exhaustion of selling pressure.
Moving Average Theory
Liberty Formula One A maintains a robust bullish alignment across key moving averages. The 50-day moving average (~$83) sits above both the 100-day (~$79) and 200-day (~$75), confirming the primary uptrend. Price action is trading well above all three averages, with the 50-DMA offering dynamic support. The sustained gaps above these averages suggest strong underlying momentum. Golden crosses occurred previously (50 crossing above 200 in late 2024), adding structural confidence to the bull trend.
MACD & KDJ Indicators
The Moving Average Convergence Divergence (MACD) remains positive and above its signal line, indicating persistent upward momentum without significant divergence. The KDJ oscillator shows the %K line at approximately 85 and %D around 78 on daily settings, reflecting overbought territory that can precede short-term consolidation. However, sustained high KDJ readings in strong uptrends can persist longer than expected. No bearish divergence is currently apparent between these momentum oscillators and price highs.
Bollinger Bands
Price is riding the upper Bollinger Band ($90.75, calculated based on 20-day SMA and standard deviation), a sign of strong directional momentum. Bandwidth expanded significantly during the recent breakout, reflecting increased volatility to the upside. This price position relative to the bands often signals continuation potential, though a mean-reversion pullback towards the midline (~$87.50) becomes increasingly probable the longer it stays at extreme levels. The absence of sharp contractions preceding this move suggests the breakout was technically sound.
Volume-Price Relationship
Volume during the three-day rally averaged around 201,817 shares, exceeding the preceding weeks but falling short of the exceptionally high volume spikes seen during the February rally and April sell-off. While supporting the advance, the volume isn't overwhelming relative to historic peaks, warranting vigilance for confirmation volume. The June 16th breakout candle saw the most significant volume within this surge, enhancing its validity. Declining volume on pullbacks (e.g., June 13th) helps confirm the strength of the uptrend.
Relative Strength Index (RSI)
The daily RSI currently stands near 65, having risen from a low of 48 during the early June pullback. It sits comfortably in bullish territory (above 50) but avoids the overbought zone (above 70), suggesting room for potential upside before exhaustion becomes a concern. There is no bearish divergence as the RSI made new highs alongside the price. The current reading suggests sustainable momentum rather than imminent reversal.
Fibonacci Retracement
Applying Fibonacci retracement to the significant advance from the December 2024 low ($64.44) to the current June 2025 high ($92.085) reveals key levels. The 38.2% retracement rests at $81.40, while the more critical 61.8% level sits at $74.85. Price tested the 38.2% level during the March-May consolidation, finding strong support. This level now serves as major strategic support in any significant pullback. The break above the 0% level (previous high) confirms the continuation of the bullish impulse wave.
Confluence and Caveats
Strong confluence exists: The breakout above $91.62 resistance aligns with MACD positivity, Bollinger Band expansion, an RSI in bullish territory, and sustained price action above rising MAs. The key technical warning arises from the KDJ entering overbought territory, coupled with price at the upper Bollinger Band and nearing historical resistance near $95, suggesting potential for short-term consolidation or profit-taking. Volume, while supportive, requires ongoing verification for sustaining the rally. Overall, the technical structure favors the upside, but vigilance for resistance near $95 and signs of reversal (e.g., bearish candle formations, KDJ bearish cross, declining volume on up moves) is warranted before committing significantly at current levels.