On Semiconductor Surges 3.14% to $62.45 as Bullish Signals Align Across Key Indicators

Candlestick Theory
On Semiconductor's recent price action reveals significant bullish momentum. The session ending July 22, 2025, formed a long-bodied green candle closing near the high ($62.45) after testing support near $59.75, signaling strong buying pressure. This pattern follows a brief consolidation between $58.61–$60.72, establishing support at $59 and resistance near $63.63. A decisive break above $63.63—validated by high volume—would confirm bullish continuation, while failure to hold $60 may indicate short-term profit-taking.
Moving Average Theory
The moving average structure exhibits a bullish alignment. The 50-day SMA (~$55) recently crossed above the 100-day SMA (~$50) and 200-day SMA (~$48), forming a "golden cross" that reinforces intermediate-term upside momentum. Price trading at $62.45 remains comfortably above all three SMAs, reflecting sustained upward pressure. The ascending 50-day SMA slope further supports the current uptrend, though a breach below $58 (50-day SMA proximity) could signal near-term exhaustion.
MACD & KDJ Indicators
The MACD histogram shows positive momentum acceleration, with the MACD line (12/26-EMA difference) above its signal line since early July. Concurrently, the KDJ oscillator—currently reading K:78, D:72, J:90—flags overbought territory. While KDJ's elevated levels suggest near-term consolidation risk, the absence of bearish divergence (price and momentum remain aligned) tempers reversal concerns. This implies continued bullish bias unless KDJ sustains below 70.
Bollinger Bands
Bollinger Bands (20-day SMA ± 2σ) highlight increasing volatility as price presses against the upper band ($63.50). The band expansion from late June aligns with the breakout above $58, confirming strong directional conviction. Price trading at the upper band edge may precede minor pullbacks, but a confirmed close above $63.63 could extend the expansion phase. Conversely, a contraction toward the 20-SMA ($59.60) would suggest consolidation.
Volume-Price Relationship
Volume patterns validate bullish price action. The July 22 rally of 3.14% occurred on 11.4M shares—40% above the 20-day average—signifying strong accumulation. Earlier advances (e.g., July 8: +5.5% on 8.98M shares) similarly coincided with volume surges, while pullbacks saw diminished volume, indicating limited sell-side commitment. This volume confirmation strengthens the case for trend sustainability above $60.
Relative Strength Index (RSI)
The 14-day RSI (62) reflects moderate bullish momentum without extreme overbought conditions. While nearing the 70 threshold, RSI divergence is absent, and the indicator remains above its mid-line—consistent with a healthy uptrend. Traders should monitor for RSI values exceeding 70 on diminishing volume, which may foreshadow pullbacks, but current readings suggest residual upside room.
Fibonacci Retracement
Applying Fibonacci levels to the swing low ($32.20 on April 8, 2025) and high ($63.63 on July 22, 2025), key retracement zones emerge. The recent consolidation respected the 61.8% level ($51.62) as support before rallying. Current price action near the 78.6% retracement ($56.90) and 100% projection ($63.63) suggests these levels as immediate psychological barriers. A decisive close above $63.63 could propel prices toward the 127.2% extension ($70.50), while the 50% retracement ($47.91) offers critical long-term support.