Nu Holdings Surges 3.26% to $15.22 as Technical Indicators Signal Bullish Momentum Amid Key Resistance Clusters

Nu Holdings (NU) closed at $15.22 on the most recent session, reflecting a 3.26% increase, signaling potential short-term bullish momentum. Historical data from the past year reveals a dynamic price trajectory, with notable volatility and key technical levels emerging as focal points for analysis.

Candlestick Theory

Recent candlestick patterns suggest a mix of bullish and bearish signals. The latest session’s 3.26% gain forms a strong green candle, potentially signaling a bullish reversal if it follows a prior bearish pattern. Key support levels are identified at $13.20–$13.60, reinforced by multiple intraday lows in August and early September, while resistance clusters around $14.80–$15.30, marked by prior highs in late August and early September. A potential “bullish engulfing” pattern may emerge if the previous session’s bearish candle is fully covered by the current rally.

Moving Average Theory

The 50-day moving average (MA) currently hovers near $13.80, above the 100-day MA ($13.30) and 200-day MA ($12.50), indicating a medium-term bullish bias. The price’s recent retest above the 200-day MA suggests a potential trend reversal from a prolonged consolidation phase. However, the 100-day MA crossing below the 200-day MA in late July highlights a prior bearish signal, which has since been negated by the recent upswing. Confluence between the short-term MA crossover and price action above key moving averages strengthens the case for continued upward momentum.

MACD & KDJ Indicators

The MACD line (12, 26, 9) crossed above the signal line in mid-September, aligning with the recent price surge and suggesting a bullish momentum shift. The KDJ (Stochastic) indicator shows the %K line rising above %D, with the fast stochastic nearing overbought territory (around 75), hinting at potential exhaustion in the short-term rally. However, the divergence between the MACD’s strong positive momentum and the KDJ’s overbought condition warrants caution, as it may signal a near-term pullback.

Bollinger Bands

Volatility has expanded in recent sessions, with the price testing the upper Bollinger Band ($15.30–$15.50) after a period of contraction in late August. The current price of $15.22 sits near the upper band, suggesting overbought conditions and a possible reversion toward the mean. The bands’ width has widened from 1.5% to 3.5%, reflecting heightened uncertainty. A break above the upper band could extend the uptrend, while a close below the middle band ($14.20–$14.50) would invalidate the bullish case.

Volume-Price Relationship

Trading volume spiked to $933.8 million on the most recent session, significantly higher than the 50-day average of $500 million, validating the price surge. However, volume has been inconsistent in the preceding sessions, with lower volumes observed during the consolidation phase in late August. This suggests that while the recent rally is supported by strong participation, sustainability may depend on follow-through buying. A decline in volume during subsequent bullish sessions could signal waning momentum.

Relative Strength Index (RSI)

The 14-day RSI stands at approximately 62, indicating moderate bullish momentum without entering overbought territory (>70). Historical RSI readings in late August (below 30) and mid-September (peaking at 68) suggest the current level is within a normal range. However, the RSI’s divergence from price action—a higher high in price without a corresponding RSI high—hints at potential overextension. A move above 70 would confirm overbought conditions, increasing the likelihood of a corrective pullback.

Fibonacci Retracement

Applying Fibonacci levels to the major low of $10.00 (late April) and high of $15.00 (late August), key retracement levels include 38.2% ($13.10) and 61.8% ($11.65). The current price of $15.22 has surpassed the 61.8% level, suggesting a potential retest of the 78.6% retracement at $14.30 as a critical support zone. A breakdown below this level could trigger a deeper correction toward the 50% retracement ($12.50), while a sustained close above $15.30 would invalidate the Fibonacci model and extend the uptrend.

Backtest Hypothesis

A backtest strategy could be designed to enter long positions when Nu Holdings breaks above a 20-day high with a closing volume above the 50-day average, confirmed by RSI crossing above 50 and MACD crossing above the signal line. Historical data from late August and early September aligns with this setup, as the stock met these criteria during its rally from $13.00 to $15.22. The strategy would aim to capture momentum-driven trends while using Fibonacci levels as profit-taking targets. However, the recent divergence in the KDJ and potential RSI overbought conditions necessitate tight stop-loss placement near the $13.20 support level to mitigate downside risk.