Astera Extends Rally With 5.55% Gain As Technicals Signal Bullish Momentum

Astera (ALAB) concluded the latest session with a notable 5.55% gain, extending its winning streak to three consecutive days and accumulating an 8.61% advance over this period. This recent strength warrants a comprehensive technical evaluation utilizing multiple methodologies.
Candlestick Theory
Recent price action features a series of bullish candles with progressively higher highs and higher lows, indicating sustained buying pressure. A prominent resistance level emerges near $191.29, closely aligning with the recent multi-week high. Significant support is established around $174.15-$175.60, validated by price reactions on August 25th and July 31st. The absence of clear reversal patterns like bearish engulfing or shooting stars near the $191 resistance suggests continued upward momentum may persist in the near term.
Moving Average Theory
The moving average structure exhibits a bullish bias. The 50-day MA (calculated circa $135) maintains a steady ascent above the flatter 100-day MA (~$115) and 200-day MA (~$100), confirming a long-term uptrend. Shorter-term price dips consistently find support near the 50-day MA, as seen during the late July consolidation. The current price trading significantly above all three key averages reinforces the prevailing upward trend strength, though a decisive break below the 50-day MA would signal a potential correction phase.
MACD & KDJ Indicators
The MACD histogram shows expanding positive momentum, with the signal line recently crossing bullishly above the MACD line. Concurrently, the KDJ indicator presents the %K line crossing above the %D line in overbought territory (KDJ readings near 80). While this reflects strong upward momentum, the KDJ’s position suggests near-term exhaustion risk. Traders should monitor for potential bearish MACD crossovers or KDJ reversals below the 80 threshold as early warning signals.
Bollinger Bands
Bollinger Bands demonstrate a significant expansion phase coinciding with the recent price surge, highlighting elevated volatility. The price consistently tests the upper band boundary ($~187-$190), typically indicating strong bullish momentum. However, extended periods hugging the upper band can precede pullbacks towards the middle band (20-day MA, ~$172). A contraction in bandwidth following this rally would suggest declining volatility and potential consolidation.
Volume-Price Relationship
Volume analysis supports the bullish structure. Notable price advances, such as the 28.66% surge on August 6th and the recent three-day rally, occurred alongside significantly above-average volume, confirming buyer conviction. Conversely, down days often see lower volume, suggesting limited sell-side pressure. The strong volume signature accompanying the breakout above the $180-$182 resistance area (tested multiple times in early August) further validates the sustainability of the upward move.
Relative Strength Index (RSI)
The 14-period RSI currently registers approximately 68, trending upwards towards overbought territory (above 70) but not yet breaching it. While the RSI approaching 70 warrants attention to potential exhaustion, the absence of a clear bearish divergence (price making higher highs while RSI fails to) mitigates immediate reversal concerns. An RSI firmly sustained above 70 could signal an overextended condition, increasing the probability of a corrective pullback or consolidation.
Fibonacci Retracement
Applying Fibonacci retracement to the major swing low near $38 (September 2024) and the recent high near $191.29 identifies key levels. The 38.2% retracement level (~$138) aligns with the July/August consolidation zone, which previously acted as support. More importantly, the 61.8% retracement level (~$130) provided crucial support during the mid-May pullback. The current price action near all-time highs places the 161.8% extension level (~$210) as a plausible long-term upside target, contingent on overcoming the immediate $191.29 resistance.
Confluence and Divergence
A significant bullish confluence exists at the $175-$180 zone, combining the 50-day MA support, the psychological $180 level, and the mid-Bollinger Band. Conversely, a subtle divergence requires monitoring: while price reached a new multi-week high during the recent three-day rally, the RSI did not exceed its peak from early August, hinting at potential underlying weakening momentum relative to price. The KDJ's overbought reading while MACD remains strongly positive presents a mixed signal for immediate direction. A decisive break above $191.29 with sustained high volume is needed to confirm the continuation of the primary uptrend, while failure here increases the likelihood of a retracement towards the $175-$180 confluence support area.