Truist Financial Stock Jumps 4.18% On Heavy Volume As Technicals Turn Bullish

Truist Financial (TFC) shares rallied 4.18% in the latest session, closing at $45.91 on significantly elevated volume of 6.67 million shares, signaling strong bullish conviction after consolidating near recent support levels.
Candlestick Theory
The recent session formed a robust bullish candle that engulfed the prior three trading days' ranges, indicating strong buying pressure. Key support now resides near $44.00-$44.25, validated by multiple reversal wicks in early August. Resistance is evident at $46.00-$46.65, aligning with July's swing high where sellers previously emerged.
Moving Average Theory
The 50-day moving average (approximating $42.80) recently crossed above the 100-day MA ($41.90), confirming improving medium-term momentum. Price remains firmly above the 200-day MA (~$40.10), sustaining the long-term uptrend. The latest close above the 50-day MA after a brief test reinforces bullish near-term bias.
MACD & KDJ Indicators
MACD histogram turned positive on August 22nd after a brief dip below the signal line, suggesting renewed upward momentum. KDJ shows the K-line (82) and D-line (76) entering overbought territory, with J-line at 95 indicating extremely stretched conditions. This warns of potential near-term consolidation despite bullish MACD alignment.
Bollinger Bands
Price touched the upper Bollinger Band ($46.20 approximation) during the latest rally after bands contracted in early August – a volatility expansion signaling directional conviction. However, trading at the upper band increases near-term mean-reversion probability, particularly when combined with overbought oscillators.
Volume-Price Relationship
The bullish breakout was validated by volume 12% above the 30-day average, confirming buyer participation. Notably, the highest volume spikes coincided with up days during the June-July advance and the August 20-22 rebound, reinforcing demand at higher levels.
Relative Strength Index (RSI)
The 14-day RSI (approximately 67.3) approaches overbought territory but remains below the 70 threshold. Crucially, RSI held above 40 during recent pullbacks, demonstrating resilient momentum. Further ascent above 70 would trigger divergence concerns against overextended KDJ.
Fibonacci Retracement
Using the June 13th low ($38.97) and July 22nd high ($46.65) as anchor points, the 61.8% retracement level ($42.50) provided strong support during the August pullback. The current advance faces resistance at the 78.6% level ($45.20) and the 100% extension at $46.65.
Confluence & Divergence Notes
Strong confluence exists around $45.20-$45.50 (Fibonacci 78.6%, psychological resistance, and prior swing highs). This aligns with Bollinger Band resistance and KDJ overbought warnings, increasing significance. A minor divergence appears between bullish MACD/volume signals versus overextended KDJ, suggesting potential consolidation before testing higher resistance levels. The overall technical structure favors continuation if price sustains above $44.25 support, though probabilistic near-term pullback risk exists after the sharp rally.