Nu Holdings Extends Slide With 3.09% Drop As Bearish Indicators Converge

Nu Holdings (NU) concluded the most recent session at $11.92, declining 3.09% and extending its losing streak to two consecutive days with a cumulative 3.95% drop. This downward momentum warrants a multi-faceted technical evaluation of the stock’s trajectory using established indicators.
Candlestick Theory
The current price action reveals consolidation between $11.89 and $12.37, with the latest candle closing near its low, indicating persistent selling pressure. Key resistance emerges near $12.60, aligning with the August 7th high, while critical support rests at $11.70, a level tested multiple times in June. The repeated failure to breach the $12.60 resistance, coupled with recent bearish closes, suggests vulnerability to further downside unless buyers reclaim this threshold decisively.
Moving Average Theory
Nu Holdings trades below all major moving averages, confirming a bearish trend structure. The 50-day MA hovers near $12.50, the 100-day near $12.70, and the 200-day around $13.00. With the current price ($11.92) positioned decisively below these levels and the shorter-term averages descending below longer-term ones, the configuration signals sustained downward momentum. This alignment reflects entrenched bearish sentiment across multiple timeframes.
MACD & KDJ Indicators
MACD displays a bearish crossover below its signal line, with the histogram in negative territory, reinforcing the downtrend. Concurrently, KDJ metrics oscillate near oversold regions, with the K-line at 20 and D-line at 25. While KDJ’s oversold reading might imply exhaustion, its convergence with MACD’s bearish momentum suggests limited immediate reversal potential. The absence of bullish divergences strengthens the case for continued downward pressure.
Bollinger Bands
Price action trades near the lower Bollinger Band ($11.80), while the bands contract significantly, indicating diminished volatility. Typically, such compression precedes directional breakouts; however, the close below the lower band and absence of bullish reversal candles increase the probability of a breakdown. A sustained move beneath $11.80 could accelerate declines, whereas a rebound might retest the middle band ($12.25).
Volume-Price Relationship
Recent declines occurred alongside elevated volume (43M shares vs. 21M on August 8th), validating selling pressure. However, the July 18th capitulation event—a 6.93% plunge on 91M shares—established a high-volume support zone near $12.00. The latest volume surge on negative days overshadows the relatively muted volume during June’s $11.70-$12.00 consolidation, suggesting potential vulnerability below this historic support.
Relative Strength Index (RSI)
The 14-day RSI sits near 38, approaching oversold territory but lacking decisive bullish reversal signals. While this could foreshadow a technical bounce, RSI has remained below 50 since late July, reflecting persistent bearish momentum. Notably, oversold conditions in a strong downtrend like this often persist, diminishing the standalone predictive power of RSI readings below 30.
Fibonacci Retracement
Using the June swing low of $11.83 and the July 18th peak of $13.99, key Fibonacci levels are derived. The stock currently hovers just above the 61.8% retracement level ($11.80). A breach could extend losses toward the 78.6% retracement at $11.20. Conversely, the 50% retracement ($12.30) and 38.2% level ($12.80) now act as layered resistance zones, aligning with recent price rejections.
Confluence and Divergence
Convergence is evident among indicators, with moving averages, MACD, and volume confirming bearish dominance. The Bollinger Band squeeze and proximity to Fibonacci support create potential inflection points, but divergences remain absent. KDJ’s oversold signal lacks corroboration from RSI or price reversals, suggesting limited reversal momentum. The collective evidence points toward sustained bearish control, with breaches below $11.80 increasing downside risk, while recovery hinges on reclaiming the $12.60 resistance decisively.