Shinhan Financial Rises 1.22% Amid Technical Consolidation Near Key Resistance

Shinhan Financial Group (SHG) rose 0.83% in the most recent session, extending its gains to 1.22% over two consecutive trading days. This upward movement occurs within a broader technical context revealed by the following analysis:
Candlestick Theory
Recent sessions show a bullish engulfing pattern forming over September 8-9 as higher lows absorbed prior selling pressure. Key resistance is observed at 48.04 (August 28 high), while support emerges at 46.26 (September 8 low). The price action near 47.38 suggests consolidation, with decisive breaks beyond 47.54 needed to confirm directional conviction. Earlier double-top formations around 50.96 (July peak) remain a major technical barrier.
Moving Average Theory
The 50-day MA (currently ~47.50) converges with price action, reflecting near-term equilibrium. Crucially, both the 100-day MA (~45.80) and 200-day MA (~42.30) maintain upward slopes beneath the price, confirming the primary bullish trend. Golden crosses formed earlier this year remain intact, though the compression between the 50-day and price may precede volatility expansion.
MACD & KDJ Indicators
The MACD histogram shows waning bearish momentum as it approaches a bullish crossover near the zero line. KDJ readings (K: ~60, D: ~55) recently exited oversold territory (<30 in late August) and now rise toward neutral, indicating recovering momentum. However, neither oscillator yet signals strong directional bias, reflecting ongoing consolidation.
Bollinger Bands
Volatility contraction is evident as bandwidth narrowed 15% over three weeks. Price currently tests the mid-band (~47.20), which aligns with the 50-day MA. A sustained breakout above this level would likely trigger band expansion. The upper band at 48.60 and lower band at 45.80 define the next volatility-based boundaries.
Volume-Price Relationship
Recent gains occurred on decreasing volume (234k to 190k shares), raising sustainability concerns. Notable volume spikes accompanied July’s 50.96 peak (513k shares) and August’s decline, establishing those as high-conviction turning points. The absence of volume confirmation during this rebound warrants caution despite the price recovery.
Relative Strength Index (RSI)
The 14-day RSI reading of 55 remains neutral, recovering from an oversold trough of 27 in late August. This positions SHG with moderate upside capacity before reaching overbought territory (>70). The gradual RSI ascent since September aligns with price recovery but lacks momentum exuberance.
Fibonacci Retracement
Using the swing low of 41.86 (September 2024) and high of 50.96 (July 2025), key retracement levels emerge: 38.2% at 47.49 and 50% at 46.41. Recent price consolidation near the 47.38 level indicates tension around the 38.2% retracement. A decisive break above 47.49 would target 49.01 (23.6%), while failure risks retesting 46.41 support.
Confluence & Divergences
Confluence appears at 47.49, where Fibonacci resistance aligns with the 50-day MA and Bollinger mid-band. Bullish alignment exists between MACD recovery, KDJ improvement, and RSI normalization. However, bearish volume divergence persists as prices rise on diminished participation. The Fibonacci 38.2% resistance further conflicts with the MA cluster, creating a technical inflection zone around 47.40-47.50 that may determine near-term direction.