NU Stage 4 Downtrend, Deep Base Signals Bearish Setup

Posted on by Eben@CANSLIM Research
NU daily stock chart with 10, 20, 50, 150 and 200-day moving averages, volume and RS line versus SPY — CANSLIM Research

Nu Holdings (NU) is trading in a Stage 4 declining trend, with the price below a falling 30-week moving average and only 1 of 8 trend template checks passing. The stock has formed a faulty deep base with a 38.2% depth, which historically carries an elevated failure rate, and no VCP or bullish flag pattern has emerged. Overall sentiment is bearish, suggesting investors should avoid or take a defensive stance.

As of 2026-08-12 · Close $13.56

Stage 4 (Declining) — Price below a declining 30-week MA — downtrend (30-week MA 6-week slope: -3.32%)

⚠️ Faulty cup warning: the base is 38.2% deep (above the 38–40% threshold). A correction this deep leaves heavy overhead supply — trapped holders from higher prices are likely to sell into any rally, raising the failure rate of a breakout from this base.

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