Arm Holdings Jumps 6.99% In Two Days As Technicals Signal Upside To $150

Arm Holdings demonstrated notable price action in the latest session, rising 4.13% to close at $138.61 and extending gains to 6.99% over two consecutive trading days. This momentum warrants a multi-dimensional technical assessment of the stock’s trajectory, integrating key indicators to evaluate trend sustainability and potential reversal zones.
Candlestick Theory
Recent candlestick patterns reveal constructive price action. The formation of two consecutive bullish candles—culminating in a decisive breakout above the psychological $135 resistance—signals accumulation. The stock now faces immediate resistance near the $141.32 swing high from June 9, aligning with the late-May peak of $141.57. Support is anchored at $129.55 (June 5 low), coinciding with the 50% Fibonacci level. A confirmed close above $141.32 could trigger further upside targeting $150.
Moving Average Theory
The moving average configuration reflects strengthening intermediate-term momentum. The 50-day MA ($132.80) recently crossed bullishly above the 200-day MA ($128.50), establishing a "golden cross" indicative of emerging bullish bias. Current price trades above all key MAs (50/100/200-day), with the 100-day MA ($130.20) providing dynamic support. Sustained trading above the 50-day MA reinforces the upward trajectory, though proximity to the 200-day MA warrants monitoring for mean-reversion pullbacks.
MACD & KDJ Indicators
MACD (12,26,9) exhibits bullish convergence, with the histogram expanding positively above the signal line since early June, supporting near-term upside momentum. Concurrently, the KDJ oscillator shows overbought conditions developing, with the %K line (88) and %D line (82) approaching overbought territory. While this suggests near-exhaustion risks, the MACD’s lack of divergence implies trend persistence. KDJ readings above 80 historically preceded short-term consolidations rather than sharp reversals for Arm Holdings.
Bollinger Bands
Bollinger Band width contraction has resolved with a volatility expansion, as price penetrated the upper band ($137.50) on June 9. This breakout confirms bullish momentum, though closing near the upper band may invite short-term profit-taking. The midline ($131.50) now serves as primary support, with any retracement likely to find buyers near $130—the convergence point of the 100-day MA and Bollinger midline.
Volume-Price Relationship
Volume trends substantiate recent gains, with turnover reaching 6.84 million shares on June 9—the highest in three weeks. This surge accompanies the breakout above $135, validating institutional participation. Distribution risks are low, as down days (e.g., May 29: -5.49%) featured higher volume than preceding advances, suggesting absorption rather than distribution. Sustained volume above the 20-day average (4.5 million shares) would confirm bullish conviction.
Relative Strength Index (RSI)
The 14-day RSI reads 68.6, approaching overbought territory (>70) but lacking divergence with price. Historically, Arm Holdings has tolerated extended RSI residency above 70 (e.g., February 2025) during strong trends. Current momentum may push RSI into overbought, which could prompt consolidation without reversing the uptrend. Traders should watch for bearish divergence (price highs with lower RSI peaks) as a reversal precursor.
Fibonacci Retracement
Applying Fibonacci to the $85.82 (April 8 low)-$179.93 (January 22 peak) swing reveals critical levels. The 38.2% retracement at $142.30 aligns with recent resistance, while the 50% level ($132.85) underpinned the May-June consolidation. The stock’s ability to reclaim the 38.2% level on strong volume suggests bullish sentiment, with 23.6% retracement ($155.50) emerging as the next technical target if resistance breaks.
Confluence and Divergence
Notable confluence exists around $129–$132, where the 50% Fibonacci, 100-day MA, and Bollinger midline offer robust support. Bullish confirmation arises from MACD/volume alignment with price and the golden cross. A minor divergence emerges with KDJ signaling overbought against the RSI’s neutral position, suggesting short-term consolidation—not bearish reversal—may develop. The primary risk remains failed closes above $141.32, which could reactivate range-bound behavior between $129 and $141.
Probabilistically, Arm Holdings favors upside continuation toward $150, supported by volume-backed breakouts and moving average alignment. However, overbought oscillators and Fibonacci resistance create near-term friction, warranting vigilance for pullbacks to the $132–$135 support cluster for potential entry opportunities.