Mitsubishi Ufj Jumps 6.4% On Bullish Candlestick Breakout With Strong Volume Surge

Candlestick Theory
Mitsubishi Ufj exhibits robust bullish momentum, evidenced by three consecutive white candles (July 21–23) with progressively higher closes, culminating in a 6.36% surge on July 23. This pattern signals strong buying pressure. Key resistance is observed at $14.57 (intraday high), while immediate support rests near $13.35–$13.38, aligning with the July 16 low and the 50% Fibonacci level. A decisive close above $14.57 would confirm breakout potential, whereas failure to hold $14.38 (July 23 open) may trigger short-term profit-taking.
Moving Average Theory
The stock trades firmly above all major moving averages (MAs), with the 50-day MA ($13.75), 100-day MA ($13.15), and 200-day MA ($12.50) aligned bullishly—the 50-day above the 100-day and 200-day MAs confirms a sustained uptrend. The current price ($14.55) positions 5.8% above the 50-day MA, indicating strong near-term momentum. The golden cross (50-day/200-day) established in late April remains intact, reinforcing the long-term bullish structure.
MACD & KDJ Indicators
MACD (12,26,9) shows a bullish crossover on July 21, with the histogram expanding positively—a sign of accelerating upward momentum. KDJ (14,3,3) registers an overbought condition (K: 86, D: 82, J: 94), typically cautioning against immediate entry but aligning with strong trends. The MACD-KDJ confluence supports continuation potential, though divergence risks emerge if KDJ sustains overbought levels without corresponding price highs.
Bollinger Bands
Volatility expansion is pronounced, with price piercing the upper Bollinger Band (20-day SMA at $13.80, ±2σ) on July 23. This breakout after a July compression phase signals trend acceleration. However, closes above the upper band historically precede short-term pullbacks. The midline ($13.80) now acts as dynamic support, while a consolidation near $14.30 would suggest equilibrium before the next leg.
Volume-Price Relationship
Volume surged 84% on July 23 (4.45M shares) compared to the 30-day average, validating the breakout with robust participation. The three-day rally saw escalating volume, indicating institutional accumulation. Notable is the absence of distribution patterns—down days (e.g., July 18) featured lower volume, reinforcing bullish conviction. Sustained volume above 3.5M shares would be critical for trend continuity.
Relative Strength Index (RSI)
The 14-day RSI reads 78, deep in overbought territory (>70). Historically, such levels preceded minor consolidations (e.g., early July’s pullback from RSI 75). However, RSI can remain elevated in strong trends. Investors should monitor for bearish divergence (e.g., higher highs with lower RSI peaks), though none is currently evident. The reading warrants caution but doesn’t invalidate momentum.
Fibonacci Retracement
Using the swing low of $11.10 (April 10) and high of $15.03 (March 21), key levels are: 23.6% ($12.03), 50% ($13.07), and 78.6% ($14.19). The price has decisively surpassed the 78.6% retracement, targeting the $15.03 all-time high. Recent consolidation near $13.35 (July 16) respected the 61.8% level ($13.53), confirming it as strong support. A pullback should find buyers near confluent support at $14.19 (Fibonacci) and $13.80 (Bollinger midline).
Confluence and Divergence
Confluence: Bullish alignment is strongest at $13.80 (Bollinger midline + 61.8% Fibonacci + 50-day MA), offering a high-probability entry zone. The volume-backed breakout above $14.19 (Fibonacci) and golden cross reinforce upside bias.
Divergence: KDJ’s overbought reading contrasts with MACD’s uninterrupted uptick, though this divergence is non-critical without price weakness. RSI’s extreme warrants monitoring but aligns with Bollinger Band expansion, which typically supports momentum.
Mitigating Factors: Low-volume retracements to $13.80 would present buying opportunities, while a close below $13.35 invalidates the near-term bullish structure.