Shinhan Financial Extends Rally 2.39% As Technicals Signal Bullish Continuation

Shinhan Financial Group (SHG) rose 0.10% in the latest session, extending gains to two consecutive days with a cumulative 2.39% advance, closing at 51.32. This positions the stock near a critical technical juncture as analyzed through multiple frameworks below.
Candlestick Theory
Recent price action shows a bullish reversal pattern emerging from the 50.12 support level established on October 7. The formation of consecutive white candles on October 8–9, supported by rising volume, indicates accumulation near the psychological 50.00 level. Resistance is now evident at 51.50–51.52 (recent upper wicks), with a secondary barrier near the yearly high of 52.00. A decisive close above 51.52 would signal bullish continuation.
Moving Average Theory
The 50-day SMA (48.90) recently crossed above the 100-day SMA (47.75), confirming a bullish intermediate trend. The 200-day SMA (45.20) maintains a positive slope, reinforcing the long-term uptrend. Current price trades robustly above all three moving averages, though the 5% premium over the 50-day SMA may invite short-term consolidation. Golden crosses across timeframes suggest underlying strength.
MACD & KDJ Indicators
MACD (12,26,9) shows a bullish crossover in late September, with histogram bars expanding positively. KDJ readings (K:85, D:82, J:91) indicate overbought territory, corroborated by J-line exceeding 90. While this warns of potential pullback risk, the absence of bearish divergence preserves upside potential. MACD momentum aligns with the current uptrend but requires monitoring for fading bullish impulse.
Bollinger Bands
Price hugs the upper band (51.40), reflecting strong near-term momentum. Bandwidth expansion from September’s contraction signals volatility pickup. Sustained trading above the 20-day SMA (50.00) keeps the uptrend intact. A retreat toward the middle band would offer a pullback opportunity, while closure below 50.00 would invalidate the bullish bias.
Volume-Price Relationship
The two-day 2.39% rally saw volume surge 52% above the 30-day average, confirming bullish conviction. Notable accumulation occurred at 49.00–50.00 (September basing pattern), with distribution volume receding during pullbacks. This divergence between high-volume advances and low-volume declines underscores buyer dominance. Current volume profile supports further upside if participation persists.
Relative Strength Index (RSI)
14-day RSI (68) approaches overbought territory but hasn’t breached 70, mitigating immediate reversal concerns. RSI trendline divergence in late August foreshadowed the current rally. While momentum is firm, RSI’s proximity to 70 cautions against aggressive entry. A cooling to 55–60 would provide a healthier reset.
Fibonacci Retracement
Using the swing low of 48.26 (July 28) and high of 51.52 (October 9), key retracement levels are 50.80 (23.6%), 50.20 (38.2%), and 49.89 (50%). The recent bounce from 50.12 respected the 38.2% support, aligning with the 50-day SMA. Confluence at 50.00–50.20 (Fibonacci + SMA cluster) offers a high-probability buy zone for trend continuation.
Confluence & Divergence Notes
Confluence: Bullish alignment across moving averages, MACD, volume, and Fibonacci underscores strength above 50.00. The 50.00–50.20 zone integrates SMA, psychological, and Fibonacci support.
Divergence: KDJ’s overbought signal contrasts with RSI’s neutral reading—monitor for either consolidation resolving overbought conditions or bearish crossover confirmation. Volume divergence during minor pullbacks remains non-threatening to the primary trend.