Micron Technology Jumps 3.67% to $119.84 as Technicals Signal Bullish Breakout

Micron Technology Technical Analysis
Micron Technology (MU) advanced 3.67% in the latest session, closing at $119.84 on above-average volume of 21.3 million shares. This analysis synthesizes multiple technical frameworks to evaluate the stock's trajectory.
Candlestick Theory
Recent candlestick patterns reveal bullish momentum. The current session formed a long white candle after a brief consolidation near $115–$117, indicating strong buying pressure. Key resistance is established at the psychological $120 level, validated by the June 11 and June 16 highs near $120.96. Support emerges near $115, where multiple sessions consolidated in early June, with a stronger floor at $110 aligning with May’s swing low. A sustained breach above $120 would confirm bullish continuation.
Moving Average Theory
The 50-day, 100-day, and 200-day moving averages signal a robust uptrend. The current price ($119.84) trades above all three averages, with the 50-day MA accelerating upward. The 50-day MA crossed above the 200-day MA in late April (a "golden cross"), reinforcing long-term bullishness. Short-term pullbacks are finding support near the 50-day MA ($110), while the 100-day MA ($102) and 200-day MA ($98) provide deeper support layers. This alignment suggests persistent upward momentum.
MACD & KDJ Indicators
The MACD line remains above its signal line with a widening histogram, confirming bullish momentum. The KDJ oscillator shows the %K line at 85 and %D at 78, approaching overbought territory (>80) but retaining upward trajectory. While neither indicator currently signals divergence, the KDJ’s proximity to overbought levels warrants monitoring for potential short-term consolidation. MACD’s sustained positive crossover since early May supports the broader uptrend.
Bollinger Bands
Bollinger Bands highlight increasing volatility. The price consistently tests the upper band ($119–$121), reflecting strong upward momentum. Bandwidth expansion from late May onward signifies breakout validation. The midpoint of the bands near $115 acts as immediate support. Continued trading near the upper band suggests bullish conviction, though a reversion to the midline could signal temporary consolidation.
Volume-Price Relationship
Volume patterns corroborate bullish sentiment. The June 16 rally occurred on 21.3 million shares, exceeding the 10-day average, confirming buyer conviction. Notably, the May 15–June 10 advance saw progressively higher volume on up-days, indicating accumulation. Down-days have exhibited lower volume, suggesting limited selling pressure. This volume structure supports sustained upside potential.
Relative Strength Index (RSI)
The 14-day RSI reads 68, approaching overbought territory (>70) but not yet signaling exhaustion. The metric has held above 50 since early May, affirming bullish momentum. While RSI alone doesn’t indicate immediate reversal, its proximity to 70 may precede short-term consolidation. Historical data shows RSI peaks above 80 in January and April preceded pullbacks, underscoring its value as a warning indicator.
Fibonacci Retracement
Applying Fibonacci retracement to the dominant uptrend from April’s low of $63.70 to the recent high of $120.96 reveals key levels. The 38.2% retracement at $101.40 aligns with the May 30 low and the 100-day MA. The 50% level at $92.30 coincides with the 200-day MA. These convergences strengthen their relevance as support. Resistance targets include the 127.2% extension near $135 if $120 is decisively breached.
Confluence and Divergence
Confluence is evident at $115–$117 (candlestick support, Bollinger midline, and 50-day MA), reinforcing this zone’s technical significance. Divergences are currently absent; MACD, RSI, and volume all support the bullish trend. However, KDJ’s overbought lean and RSI nearing 70 may foreshadow short-term consolidation. The Fibonacci 38.2% level’s alignment with moving averages and historical price action offers a high-probability support region for pullbacks.
Conclusion
Micron Technology exhibits strong bullish momentum supported by trend, volume, and momentum indicators. The next critical test is the $120 resistance, a breach of which may accelerate gains toward $135. Short-term indicators suggest possible consolidation near $120, but any dips to $115 should attract buyers. Downside risk appears contained above $110 barring macro deterioration.