Astera Stock Surges 6.42% to $187.95 as Technicals Signal Bullish Momentum

Astera (ALAB) concluded the most recent session at $187.95, rising 6.42% and extending a two-day gain of 7.87%. This price action suggests renewed bullish momentum. The following technical analysis integrates seven methodologies to evaluate the security's trajectory, highlighting key confluences and divergences.
Candlestick Theory
Recent sessions show a hammer formation near the $167.50 support level on September 2, followed by two strong bullish candles. The long green candle on September 4 (open: $174.51, close: $187.95) indicates robust buying pressure. Key resistance stands at $191.29 (August 28 high) and the all-time high of $199.47, while support resides near $174.51. The absence of upper shadows in the latest candle suggests potential near-term resistance tests.
Moving Average Theory
The 50-day, 100-day, and 200-day moving averages exhibit a bullish alignment, with the shortest average above the longest, indicating a sustained uptrend. The current price trades above all three averages (approximated at $155, $120, and $95 respectively), reinforcing bullish bias. Confluence exists at $174–$177 where the 20-day and 50-day averages converge, creating a dynamic support zone validated by recent bounces.
MACD & KDJ Indicators
MACD shows a bullish crossover above the signal line, with histogram bars expanding positively—a sign of accelerating momentum. Conversely, the KDJ oscillator registers an overbought reading near 86% for the %K line, historically associated with short-term pullbacks. This divergence between MACD’s strength signal and KDJ’s overbought warning may imply near-term consolidation despite upward bias. Both indicators agree on underlying bullishness but diverge on timing.
Bollinger Bands
Volatility has expanded as the bands widened during the September 4 rally, with price touching the upper band. This typically precedes continuation patterns in established trends. The prior contraction period between August 25–29 signaled reduced volatility and foreshadowed the recent breakout. Current band position suggests resistance near $190 and support at $175.
Volume-Price Relationship
The 129% surge in volume on September 4 confirms bullish conviction, as the 7.04 million shares traded exceeded the 10-day average by over 80%. This volume spike coincides with the decisive breakout above $180, validating sustainability. Prior pullbacks (e.g., August 19 and September 2) occurred on declining volume, reinforcing the strength of the dominant uptrend. Notably, the August 6 breakout on record volume (17.2 million shares) established a high-confidence support base.
Relative Strength Index (RSI)
The 14-day RSI calculates to 48, remaining in neutral territory despite the price surge. This divergence from overbought KDJ readings occurs because RSI incorporates the sharp $15.37 drop on August 19 into its 14-day window. While not signaling overbought conditions currently, traders should monitor for readings exceeding 70, which could suggest overheating relative to recent price behavior.
Fibonacci Retracement
Drawing levels from the $59.32 swing low (April 23) to the $199.47 peak (August 13), the 38.2% retracement at $145.93 supported the July–August rally. More relevantly, the recent pullback to $167.50 only retraced 22.8% of the primary uptrend, indicating resilience. Applying Fibonacci to the recent correction ($199.47 to $167.50), the 61.8% retracement at $187.26 was breached on September 4. This breakout above a key Fibonacci level suggests bullish resolve, with the 78.6% level at $193.20 representing the next technical hurdle.
Confluence exists between Fibonacci ($187.26 resistance-turned-support), moving averages (convergence at $174–$177), and volume-backed price action, reinforcing $167.50 as critical support. The divergence between RSI’s neutrality and KDJ’s overbought signal warrants caution for tactical traders, though the weight of evidence from MACD, volume, and moving averages supports a probabilistically bullish outlook. Astera appears positioned to test the $191–$199 resistance zone, contingent on sustained volume participation.