Credo Technology Jumps 7.40% To $134 Amid Bullish Momentum And Technical Resistance

Credo Technology (CRDO) demonstrated significant bullish momentum in its most recent trading session, rising 7.40% to close at $134 and marking its third consecutive gain for a total 8.89% advance. This surge occurred within an established longer-term uptrend, though technical indicators suggest potential near-term consolidation.
Candlestick Theory
The 2025-09-04 session formed a Shooting Star pattern with a high of $141.09 and close at $134, indicating rejection near the $141 resistance level. This aligns with the August 28 peak of $134.35, now converted to support. Key support resides at $122.10 (September 3 low), reinforced by the July 19 low of $116.16. The three consecutive white candles preceding this pattern maintain the intermediate bullish bias, though the Shooting Star warns of potential pullback pressure.
Moving Average Theory
The 50-day, 100-day, and 200-day moving averages exhibit a bullish alignment with the 50-day above the 100-day, which in turn exceeds the 200-day. Current price action remains above all three key averages, confirming the primary uptrend. The 50-day MA (approximately $100-105) provided support during August’s consolidation. Sustained trading above $127-$130 would reinforce the bullish structure, while a break below the 50-day MA could signal trend deterioration.
MACD & KDJ Indicators
MACD shows a bullish crossover emerging in early September after a period of neutralization in late August. This suggests renewed upward momentum, though it approaches overbought territory. The KDJ oscillator has entered overbought zones (K and D values exceeding 80), typically preceding short-term corrections. The simultaneous MACD bullish crossover and KDJ overbought reading create tension between momentum strength and exhaustion signals.
Bollinger Bands
September’s price surge triggered Bollinger Band expansion (+2σ near $140, -2σ near $110), reflecting increasing volatility after the August contraction. The touch of the upper band on September 4 coincides with the Shooting Star formation, implying resistance at $141. The bandwidth expansion supports continued directional movement, though the upper band rejection suggests potential retracement toward the 20-period moving average ($122-125).
Volume-Price Relationship
Recent gains are validated by increasing volume: 6.41M shares on September 2, 9.17M on September 3, and 14.02M on September 4. This ascending volume pattern confirms buyer conviction. However, the September 4 volume spike accompanying resistance rejection introduces distribution risk. Notably, the August 29 decline occurred on relatively light volume (4.97M shares), reducing its bearish significance compared to high-volume advances.
Relative Strength Index (RSI)
The 14-day RSI (approximately 68) approaches overbought territory (70+) but has not yet triggered a formal warning. This positioning reflects strengthening momentum without immediate exhaustion signals. Divergence is absent as RSI progression matches the price recovery from August lows. Traders should monitor for RSI values exceeding 75, which could prompt profit-taking near the $141 resistance.
Fibonacci Retracement
Using the swing low of $24.90 (2024-09-10) and high of $141.09 (2025-09-04), key retracement levels emerge: 23.6% ($113.67), 38.2% ($96.71), and 50% ($83.00). The 23.6% level provided support during August’s pullback to $116.16, reinforcing its technical relevance. A downside reversal would likely target $113.67-$116 as primary support, while sustained trading above $127 maintains bullish bias toward the all-time high.
Confluence and Divergence Observations
Confluence exists at $122-125 where Bollinger midline support, the 50-day MA, and prior swing lows converge, creating a high-probability bounce zone should retracement occur. However, a KDJ/price divergence is emerging as the September 4 high marginally exceeded the August high while KDJ values are weakening. This negative divergence, coupled with the Shooting Star at the Fibonacci-derived $141 resistance, warrants caution despite the volume-confirmed uptrend. The absence of RSI divergence tempurs bearish interpretation, suggesting any pullback may represent consolidation rather than reversal.