Astera Rebounds 4.91% to $179.28 as Technicals Signal Bullish Continuation

Astera (ALAB) advanced 4.91% to $179.28 in the latest session, recovering from an intraday low of $169.47 after a volatile sequence that included a 28.66% breakout rally. The following technical analysis synthesizes key indicators to contextualize this movement.
Candlestick Theory
Recent candlesticks reveal critical inflection points. The August 6th session formed a robust bullish marubozu (open near low, close near high) at $174.39 on record volume, establishing $160.47 as major support. This was followed by bearish engulfing patterns on August 7th-8th, confirming resistance at $183.62. The August 8th hammer-like formation with a long lower wick (rejecting $169.47) signals buyer conviction. Near-term resistance remains $180.67-183.62, while $169.47 and the psychological $170 level now constitute key support.
Moving Average Theory
The moving average structure confirms a bullish bias. Price maintains position above the ascending 50-day MA (~$121), 100-day MA (~$99), and 200-day MA (~$85), indicating sustained upward momentum. The 50-day MA’s consistent stance above longer-term averages reinforces intermediate strength. Recent dips toward $169-170 found support near the 10-day EMA, demonstrating alignment between short-term dynamic support and price behavior.
MACD & KDJ Indicators
MACD (12,26,9) exhibits a bullish regime but with momentum divergence. While the MACD line remains above its signal line since late July, the histogram has contracted over three sessions despite higher price highs – a cautionary divergence. KDJ readings retreated from overbought territory (K=89 on August 6th) to K=68/D=65 by August 8th, resetting oscillation room without crossing bearishly. This relief from extreme levels supports upside continuation potential.
Bollinger Bands
Volatility expanded dramatically during the August 6th breakout, with bands widening to capture the $160-185 range. The August 8th close near the upper band ($181) signals ongoing strength. However, the detachment from the 20-day SMA (~$155) indicates elevated near-term pullback risk. Band contraction following the expansion phase suggests consolidation before the next directional move. Holding above the midline ($155) would sustain bullish control.
Volume-Price Relationship
Volume dynamics underscore key price moves. The August 6th breakout occurred on the year's highest volume (17.23M shares), validating upside conviction. The subsequent pullback on August 7th saw significant volume (8.77M), confirming profit-taking pressure. However, the August 8th recovery transpired on lighter volume (7.05M), introducing a mild bearish divergence that warrants monitoring for confirmation of sustainability in further sessions.
Relative Strength Index (RSI)
The 14-day RSI cooled from overbought (79.5 on August 6th) to 67.2 at the latest close, retreating from warning territory while preserving bullish momentum. The reset avoids immediate reversal pressure, but the failure to breach 80 during the all-time high created a negative divergence with price. RSI holding above 50 maintains an intermediate uptrend bias, though rallies beyond $180 may retest overbought thresholds.
Fibonacci Retracement
Applying Fibonacci to the November 2024 low ($38.01) and August 2025 high ($183.62) reveals critical levels. The 23.6% retracement ($152.30) aligns with the August 8th low ($169.47) and 50-day MA, creating major confluence support. The 38.2% level ($137.10) coincides with the early August breakout point and July 31st gap support. These zones offer high-probability rebound areas should retracements deepen, while sustained trading above $175 suggests strength toward record highs.
Confluence and Divergence Observations
Notable confluence exists at $152-170, combining Fibonacci, moving averages, and candlestick support. Bearish divergences emerged in MACD histogram and volume during the rally extension, suggesting fatigue. However, the overarching uptrend remains intact, with moving average alignment and Bollinger Band positioning favoring bulls. A decisive close above $183.62 with volume expansion would invalidate divergence concerns and signal renewal of upward momentum.