NU Holdings | Potential reaction zone after the sell-offNu Holdings Ltd. Class ABATS:NUg_lappas10NU closed today at $11.93, down around 8%, following the CFO transition news and the downgrade from BofA. From a technical perspective, the stock is now back near a very important support area around $11.80–$12.00. This zone has acted as a base several times in the past before the stock attempted to move higher again. The negative part is that NU is trading below its key moving averages: the 20-day, 50-day, 100-day and 200-day EMAs. That tells me the short-term trend has clearly weakened and sellers are currently in control. The positive part is that the RSI is close to 31, which means the stock is approaching oversold territory. This does not automatically mean the stock has to bounce, but it does show that the recent selling pressure is becoming stretched. For me, the $11.80–$12.00 area is the key zone to watch. If NU manages to hold this support and starts showing signs of demand, the first areas I would watch are around $13.10 and then $13.90, where the nearest moving averages are sitting. Above that, the bigger resistance remains near $14.90. A move back above that area would be much more important, because it would start to repair the technical structure. However, if NU clearly loses the $11.80 support area, then the short-term bounce setup becomes weaker and the stock could look for lower levels. My view is that today’s news is not as bad as the price action may suggest. The new CFO has a strong background, especially in financial services, payments and consumer credit. Still, the market usually dislikes leadership changes when there are already concerns around credit risk and international expansion. So for now, I do not see a reason to rush. But I do see an interesting support zone where a reaction could start to build, as long as the $11.80 area holds.