Pure Storage Jumps 4% On Bullish Breakout With Heavy Volume

Pure Storage (PSTG) advanced 3.97% in its latest session, closing at $90.33 on significant volume of 3.28 million shares. This analysis evaluates technical dynamics using the historical price data provided.
Candlestick Theory
Recent candlesticks reveal a bullish breakout pattern. The 10/06 session formed a strong white candle closing near its high ($91.39), decisively overcoming the 10/03 swing high of $89.40. This invalidates the prior 10/03 bearish candle, establishing $89.40-$90.33 as immediate resistance. Key support lies at $85.02-$85.03 (recent swing low and 10/02 close), with secondary support at $80.68 (9/26 low). The breakout suggests conviction but leaves the price vulnerable to profit-taking near the all-time high.
Moving Average Theory
The moving average configuration signals a robust uptrend. Current price ($90.33) trades comfortably above all key averages—50-day ($76.15), 100-day ($71.20), and 200-day ($66.18). Crucially, the 50-day crossed above the 100-day in late August, confirming bullish momentum. The ascending sequence (50 > 100 > 200) reflects sustained buying pressure. Conclusively, this golden cross alignment implies intermediate-term strength remains intact.
MACD & KDJ Indicators
MACD (12,26,9) maintains a bullish stance with the histogram expanding above the signal line, reflecting accelerating momentum. However, KDJ (9,3,3) flags overbought conditions with K-values exceeding 85 and J-values approaching 100. Notably, a bearish divergence emerges: the 10/06 price high ($91.39) exceeded the 9/24 peak ($88.50), yet KDJ failed to confirm with lower highs. While MACD supports continuation, KDJ’s divergence and extreme readings suggest near-term exhaustion.
Bollinger Bands
Bollinger Bands (20-day) exhibit pronounced expansion, with the price touching the upper band ($91.20). This volatility surge validates the recent breakout. Historically, PSTG has respected the 20-period moving average midline ($86.90) during advances. Current positioning indicates strong upside momentum, though contact with the upper band increases the likelihood of consolidation to relieve overextended conditions.
Volume-Price Relationship
Volume confirms the bullish trajectory. Key up days (10/06: +3.97%, 10/02: +2.99%, 10/01: +2.24%) occurred on elevated volume exceeding the 30-day average, while pullbacks (10/03: -1.55%, 9/26: -1.28%) transpired on below-average turnover. The 10/06 volume spike (27% above average) accompanying the breakout enhances its technical credibility. Volume divergence is absent, supporting trend sustainability.
Relative Strength Index (RSI)
The 14-day RSI oscillates at 68, hovering below the overbought threshold (70). While elevated, this does not yet signal acute overheating. The indicator’s consistent maintenance above 50 since mid-August aligns with the primary uptrend. Given the robust trend strength, RSI readings in the 65-75 band may persist without immediate reversal implications, though they warrant vigilance for bearish divergence.
Fibonacci Retracement
Applying Fibonacci to the major swing low ($50.20 on 6/16/2025) and high ($91.39 on 10/06/2025) reveals critical levels. The 23.6% retracement ($81.67) aligns precisely with the 9/26 swing low ($80.68) and the 20-day moving average. Deeper supports emerge at 38.2% ($75.66) and 50% ($70.80), both untested since August. These Fibonacci levels converge with moving averages, creating high-probability support zones should a pullback materialize.
Confluence and Divergence
Notable confluence exists between Fibonacci support ($81.67), moving averages (20-day: $86.90, 50-day: $76.15), and volume-backed breakout confirmation, underscoring structural strength. However, KDJ’s bearish divergence against recent price highs presents a cautionary signal. This is partially offset by MACD’s continued upward trajectory. Collectively, the evidence suggests ongoing bullish bias with elevated near-term consolidation risk due to overextended oscillators and volatility expansion.