Astera Soars 28.66% to $174.39 on Record Volume as Technicals Signal Bullish Momentum

Astera (ALAB) surged 28.66% in the most recent session, closing at $174.39 after trading between $160.47 and $183.62 on substantially elevated volume of 17.2 million shares. This dramatic move punctuates a volatile uptrend observed over the past month.
Candlestick Theory
Recent price action reveals significant bullish momentum. The August 6th session formed a large bullish marubozu (minimal upper/lower shadows), indicating strong buying pressure throughout the day. This follows a hammer pattern on August 5th (low: $134.21, close: $135.54), which signaled rejection of lower prices after a pullback. Key resistance now forms near the August 6th high of $183.62, while support sits at the previous swing high of $160.47. The $136-$142 range from late July also establishes a secondary support zone.
Moving Average Theory
Astera's price maintains robust bullish alignment across key moving averages. The 50-day MA (approximately $103) and 100-day MA (approximately $85) both slope upward, with the shorter-term 50-day acting as dynamic support during June-July consolidations. Crucially, the current price trades well above all three major averages (50/100/200-day), confirming a sustained uptrend. The 200-day MA near $70 provides a long-term floor. No bearish crossovers are imminent, though a pullback toward the ascending 50-day MA could offer a healthy retest.
MACD & KDJ Indicators
MACD shows bullish momentum expansion, with the MACD line accelerating above its signal line after a brief July dip. Histogram bars are increasingly positive. KDJ indicators reflect overbought conditions (K-value: 88, D-value: 82, J-value: 100), though such readings often persist in strong uptrends. While KDJ suggests potential near-term exhaustion, MACD’s strength indicates momentum may continue. No bearish divergence is present across either oscillator.
Bollinger Bands
Bollinger Bands (20-day, 2σ) expanded sharply on August 6th, signaling a volatility breakout. Price closed near the upper band, confirming bullish momentum. Prior to this, bands had contracted during early August, compressing energy for the breakout. The surge above the upper band suggests an overextended move, increasing near-term probability of consolidation. The middle band (~$142) now acts as immediate support.
Volume-Price Relationship
Volume confirms the bullish structure. The August 6th breakout occurred on the highest volume in 3 months (17.2M shares), validating buyer conviction. Earlier rallies (e.g., July 21st: +19.35% on 14.1M shares) similarly saw volume spikes, while pullbacks occurred on declining volume (e.g., August 1st: -4.12% on 6.9M shares). This volume profile supports sustainable upside, with capitulation volume absent during dips.
Relative Strength Index (RSI)
The 14-day RSI reads 78, entering overbought territory (>70). While this warns of potential consolidation, it doesn’t necessarily indicate reversal in strong trends. RSI trended higher since mid-July (rising from 55 to 78), aligning with price momentum. Notably, prior instances of RSI >75 (e.g., May 6th, January 27th) were followed by pullbacks but no trend reversals. Traders should monitor for bearish divergence on any retreat.
Fibonacci Retracement
Applying Fibonacci to the April-July rally (swing low: $36.37 on August 7, 2024; swing high: $174.39 on August 6, 2025):
- 23.6% retracement: $139.50
- 38.2% retracement: $120.80
- 50% retracement: $105.40
- 61.8% retracement: $89.90
Confluence exists at the 23.6% level ($139.50), aligning with the August 5th low and Bollinger mid-band. The 38.2% retracement ($120.80) matches the July consolidation zone and 50-day MA, creating a high-probability demand area if tested.
Confluence & Divergence Observations
Strong confluence exists around $140-$142 (Bollinger mid-band, Fibonacci 23.6%, and prior resistance-turned-support). The absence of bearish divergences across oscillators suggests intact momentum. A key watchpoint is volume: a failure to sustain above $160 on declining volume would undermine the breakout’s validity. Currently, multi-indicator alignment favors continued upside after potential consolidation.