NXP Semiconductors Jumps 5.52% On Bullish Reversal Signals After 7.25% Plunge

NXP Semiconductors (NXPI) closed at $216.70 on October 13, 2025, marking a 5.52% single-day gain on elevated volume of 2.66 million shares. This surge followed a steep 7.25% decline in the prior session, suggesting a potential reversal phase as technical indicators reset from oversold conditions.
Candlestick Theory
The October 10-13 price action formed a Bullish Engulfing pattern: The 7.25% down candle (high $222.67, close $205.37) was fully eclipsed by the subsequent 5.52% up candle (low $210.74, close $216.70). This indicates a shift in momentum, with immediate resistance at $217.40 (October 13 high) and major resistance near $230-$233 (September’s double-top zone). Support is emerging at $205-$210, validated by October 10’s intraday rebound from $205.14 after the August 21 low of $223.93 established a higher low structure.
Moving Average Theory
The 50-day moving average (~218.50) is currently acting as resistance, with the price testing this level from below after the recent surge. A sustained break above it may signal short-term bullish momentum. The 100-day MA (~222.30) and 200-day MA (~215.80) reveal a bearish medium-term structure, evidenced by the 50-day crossing below the 100-day in late September. However, the price holding above the 200-day MA since early August maintains the longer-term uptrend framework.
MACD & KDJ Indicators
The MACD histogram shows diminishing bearish momentum, with the signal line flattening near the zero line. A bullish crossover appears imminent if the current rebound persists. The KDJ oscillator exited oversold territory (K=28, D=23, J=38 on October 10) and now points upward (K=45, D=32, J=71), reflecting accelerating upside momentum. Both oscillators align in signaling potential trend reversal, though the J-line approaching overbought (71) warrants monitoring for near-term exhaustion.
Bollinger Bands
Volatility expanded significantly during the October 10 decline (price touching the lower band) and the subsequent rebound. The 20-day average at $216.50 aligns closely with the current close, placing price at the midline—a pivotal level for directional bias. Bandwidth remains elevated, suggesting ongoing volatility. A decisive close above $217.40 would target the upper band (~$228), while failure could retest the lower band (~$204).
Volume-Price Relationship
The October 10 sell-off occurred on the highest volume (3.98M shares) in three months, signaling capitulation. The 5.52% rebound on October 13 saw volume (2.66M) exceed the 30-day average by 33%, confirming bullish conviction. This volume-backed reversal enhances the pattern’s credibility. However, follow-through volume will be critical to sustain momentum above key moving averages.
Relative Strength Index (RSI)
The 14-day RSI rebounded sharply from near-oversold (31 on October 10) to neutral territory (54 on October 13). This rapid recovery negates bearish momentum divergence observed in September. While not yet overbought, an RSI reading above 60 would strengthen the bullish case, whereas a failure to breach this threshold may indicate lingering weakness.
Fibonacci Retracement
Using the August 21 swing low ($223.93) and the September 19 peak ($229.11), the 61.8% retracement level at $205 aligns precisely with the October 10 intraday low ($205.14). The subsequent bounce validates this support. A 38.2% retracement of the October 10-13 rally ($205.37-$216.70) projects resistance at $219.50, coinciding with the 50-day MA. A break above $219.50 would target the 50% retracement of the entire September-October decline ($232.66-$205.37) near $219, reinforcing technical significance.
Confluence and Divergence
Strong confluence exists at $205-$210, combining Fibonacci support, the 200-day MA, and the double-bottom pattern. The Bullish Engulfing candle, MACD convergence, KDJ upturn, and volume surge collectively suggest a high-probability reversal signal. Notably, RSI divergence was resolved by the recent rebound. However, the 50/100-day MA death cross introduces caution, creating a divergence with the immediate bullish price action. A sustained move above $219.50 (Fibonacci + 50-day MA) would neutralize this bearish structure. Conversely, failure to hold $210 risks retesting $205 support.