Nu Holdings Shares Rise 3.81% on Bullish Engulfing Pattern as Golden Cross Signals Uptrend

Nu Holdings (NU) closed the most recent session with a 3.81% increase, pushing the price to $13.62. This surge follows a volatile correction phase marked by sharp intraday swings, particularly on August 15 (9.08% up) and August 14 (-2.91% down). The price action suggests a potential consolidation phase after a key resistance level at $13.75 was tested and rejected, while support at $13.14 appears robust, having held during multiple pullbacks.

Candlestick Theory

The recent price action reveals a bullish engulfing pattern on August 20, where the body of the candle fully engulfs the preceding bearish candle. This pattern, combined with a rejection at $13.14, suggests a short-term reversal. Key support levels are identified at $13.14 (psychological round number), $12.77 (prior swing low), and $12.34 (2025-01-30 low). Resistance levels include $13.75 (August 15 high), $14.07 (August 15 high), and $14.68 (May 14 high). A breakout above $13.75 could trigger a retest of the $14.07 level, while a breakdown below $13.14 may lead to a test of the $12.77 support.

Moving Average Theory

The 50-day moving average (currently at ~$13.10) has crossed above the 200-day MA (~$12.85), forming a golden cross that historically signals a bullish trend. The 100-day MA (~$13.05) aligns with the 50-day MA, reinforcing the uptrend. However, the 200-day MA remains below the 50-day MA, indicating a long-term bullish bias but cautioning against over-reliance on short-term momentum. The confluence of these moving averages suggests a medium-term bullish bias, with potential for a continuation pattern if the price remains above the 50-day MA.

MACD & KDJ Indicators

The MACD histogram has turned positive in recent sessions, with the MACD line crossing above the signal line, confirming a bullish divergence. The KDJ indicator (Stochastic oscillator) shows the %K line rising above the %D line at a level of ~55, suggesting entry into overbought territory. However, the RSI (discussed below) remains below 70, indicating the move may still have room to run. A potential overbought warning exists if the RSI surpasses 70 without a corresponding volume spike, which could signal a short-term reversal.

Bollinger Bands

The bands have expanded significantly since early August, reflecting heightened volatility. The price has oscillated near the upper band multiple times, particularly on August 15 and August 18, suggesting overbought conditions. A contraction in band width is currently observed, indicating a potential period of consolidation. If the price breaks above the upper band, it may signal a continuation of the uptrend; conversely, a breakdown below the lower band could trigger a pullback toward $12.77.

Volume-Price Relationship

Trading volume surged on August 15 (1.75 billion shares) during the 9.08% rally, validating the price increase. However, volume has moderated in subsequent sessions despite the continued rise in price, suggesting weakening momentum. A divergence between rising prices and declining volume may indicate a potential topping pattern. Conversely, a surge in volume during a breakout above $13.75 would strongly validate the move higher.

Relative Strength Index (RSI)

The 14-day RSI currently stands at ~62, indicating moderate bullish momentum without reaching overbought territory. Historical data shows the RSI frequently dipping into oversold levels (<30) during pullbacks, particularly in early August, followed by sharp rebounds. A move above 70 would signal overbought conditions, but given the recent volatility, this threshold should be approached with caution as a warning rather than a sell signal.

Fibonacci Retracement

Drawing a retracement line from the May 14 high ($14.68) to the February 21 low ($10.82) identifies key levels. The current price of $13.62 aligns with the 61.8% retracement level, which has historically acted as a dynamic support/resistance zone. A breakdown below this level would target the 50% retracement at ~$12.75, while a breakout above the 38.2% level (~$13.95) could retest the 23.6% level at $14.35.

Backtest Hypothesis

The MACD golden cross strategy, as described, aligns with the observed confluence of the 50-day and 200-day MA crossover in late August. Historical data from 2022-2025 shows the strategy generated a 15% average return over five days post-signal, particularly when combined with volume confirmation. The Q3 2022 269% revenue growth and customer base expansion likely contributed to the strong post-earnings surge, validating the MACD signal’s effectiveness. However, the strategy’s success is contingent on avoiding overbought conditions (RSI >70) and ensuring volume aligns with price direction to filter out false signals.