Micron Technology Extends Rally With 5.56% Gain To $168.89 In 12-Day Surge

Micron Technology (MU) shares concluded the latest session at $168.89, marking a 5.56% gain and extending a twelve-day winning streak that yielded a cumulative 42.55% return. This analysis evaluates the technical landscape using multiple methodologies.
Candlestick Theory
The twelve consecutive bullish candles reflect exceptional momentum, with the most recent session displaying a long green body (low: $162.60, high: $170.45, close: $168.89). This pattern signals sustained buying pressure but warrants caution given the extended rally. Key support resides near $155.26 (previous session’s low), followed by $147.61. Resistance is evident at $170.45 (recent high), with a breach potentially targeting $175. The absence of reversal patterns suggests trend continuation, though exhaustion risks are elevated.
Moving Average Theory
The 50-day SMA ($133.80), 100-day SMA ($119.40), and 200-day SMA ($103.50) are ascending, confirming a long-term bullish trend structure. The current price trades significantly above all three averages, indicating robust momentum. The 50-day SMA recently crossed above the 100-day and 200-day SMAs, reinforcing bullish alignment. Sustained price leadership above these averages supports the uptrend, with the 50-day SMA now acting as primary dynamic support.
MACD & KDJ Indicators
The MACD histogram shows strong positive momentum, with the MACD line elevated above the signal line and the zero threshold. However, this divergence has persisted for over a week, suggesting overextension. KDJ oscillators indicate overbought conditions (K: 88, D: 83, J: 98), exceeding the 80 threshold. While this aligns with the prevailing trend, it flags near-term exhaustion risks. A bearish KDJ crossover or MACD convergence could signal consolidation.
Bollinger Bands
Price has consistently tested the upper band ($165.80) during the rally, with the latest close piercing it—a sign of overbought territory. Band expansion during this period confirms rising volatility. While such breakouts can persist in strong trends, the width expansion now shows early signs of plateauing, hinting at potential volatility contraction. A reversion toward the 20-day SMA ($155.50) may occur to alleviate overbought conditions.
Volume-Price Relationship
Volume surged during key up days (e.g., 52.4M shares on September 11), validating breakout sustainability. Recent volume (28.1M shares) remains above the 20-day average, confirming buyer conviction. However, the latest session’s volume declined slightly from prior days despite the price gain, introducing a minor negative divergence that warrants monitoring for follow-through selling.
Relative Strength Index (RSI)
The 14-day RSI reads 79, deep in overbought territory (>70). Historically, such levels precede short-term pullbacks, though strong trends can maintain elevated RSI. This divergence against parabolic price action implies heightened corrective risk. Traders should view this as a warning, particularly if RSI retreats below 70 while prices hold near highs.
Fibonacci Retracement
Using the swing low of $89.25 (September 19, 2024) and the recent high of $170.45, key retracement levels are $151.30 (23.6%), $139.45 (38.2%), and $129.85 (50%). These levels align with prior consolidation zones and moving averages, making $151.30–$155.26 a critical support confluence. A pullback holding above $151.30 would maintain bullish structure integrity.
Confluence and Divergence
Confluence appears at $151–$155, where Fibonacci support, moving averages, and prior price consolidation converge, creating a high-probability bounce zone if tested. Notable divergences include bearish signals from RSI/KDJ oscillators against near-term price action, suggesting momentum fatigue. Bollinger Band expansion coinciding with RSI extremes reinforces overbought risks. While MACD and volume affirm the broader uptrend, prudent risk management is advised given overextension indicators.