Ubiquiti Surges 9.88% With 15.22% Two-Day Rally As Bullish Momentum Intensifies

Ubiquiti (UI) surged 9.88% in the latest session, marking two consecutive days of gains totaling 15.22%, reflecting a notable bullish resurgence.
Candlestick Theory
Recent sessions reveal significant candlestick patterns. The 2025-10-10 candle closed at its low ($655.02) after rejecting the $704.31 high, forming a bearish "shooting star." This was immediately invalidated by the next two bullish candles, culminating in a robust 9.88% advance on 2025-10-14 with minimal upper wick ($754.73 close near the $773.95 high). This pattern suggests strong buyer conviction, establishing immediate support at $655. Resistance is evident at the $773.95 peak, with a breach potentially targeting $800.
Moving Average Theory
Ubiquiti trades decisively above all key moving averages: the 50-day (~$550), 100-day (~$480), and 200-day (~$430). The consistent upward sloping alignment confirms a long-term bullish trend. The 50-day/200-day golden cross, entrenched for months, reinforces strength. Recent price action respects the 50-DMA as dynamic support, highlighting its role as a launchpad for rallies.
MACD & KDJ Indicators
The MACD histogram shows widening bullish momentum, with the signal line firmly beneath the MACD line. Concurrently, KDJ oscillators signal overbought conditions (K and D >80), but without bearish divergence. This alignment suggests momentum remains intact despite short-term overextension. Traders should monitor for MACD line flattening or KDJ bearish crosses, which may foreshadow consolidation.
Bollinger Bands
Ubiquiti recently broke above the upper Bollinger Band ($730), a typically overbought signal. However, this breakout coincides with band expansion—volatility amplification—which often precedes sustained directional moves. The close near the upper band reinforces bullish dominance. A mean-reversion pullback could target the 20-day middle band ($680), but sustained expansion diminishes reversal probability near-term.
Volume-Price Relationship
Volume surged 39% to 337,429 shares during the 9.88% rally—a clear accumulation signal. Prior sell-offs (e.g., 2025-10-10’s -5.96% slide) saw above-average volume, indicating capitulation. This shift from high-volume selling to high-volume buying validates the reversal, signaling institutional participation. The volume uptrend supports continuation if participation persists.
Relative Strength Index (RSI)
The 14-day RSI has climbed sharply to ~75, breaching the overbought threshold (>70). While this flags exhaustion risk, its slope and alignment with the price breakout suggest momentum-driven strength. RSI divergence is absent; thus, overbought readings may persist briefly during powerful rallies. Traders should await bearish RSI divergences or reversal patterns for confirmation of exhaustion.
Fibonacci Retracement
Using the swing low of $390.01 (2025-02-07) and the recent peak of $773.95:
- 38.2% retracement ($637) aligns with the 2025-10-10 low ($655), offering robust support.
- 23.6% ($697) now acts as minor support after the surge.
- Upside targets include the 138.2% extension ($816). Confluence between the 38.2% Fib and the 50-DMA reinforces $635–$655 as a high-probability buy zone for trend continuation.
Confluence and Divergence
Strong confluence exists: the volume-backed candlestick breakout, MACD momentum, and Golden Cross align with Fibonacci support, bolstering bullish bias. The lone caution is RSI overbought territory—common in strong trends but warranting vigilance for reversals. No material divergences were observed, reinforcing trend cohesiveness. Near-term consolidation above $700 would support further upside.