Credo Technology Rallies 14.44% In Four Days As Technicals Signal Bullish Momentum

Credo Technology (CRDO) has demonstrated notable price action recently, closing at $140.82 on September 5, 2025, with a 5.09% single-day gain. This marks the fourth consecutive day of gains, accumulating a 14.44% rally over this period. The analysis below employs multiple technical frameworks to evaluate the stock’s trajectory and key levels.
Candlestick Theory
The current four-day rally exhibits strong bullish momentum, highlighted by a recent long white candle closing near its high on September 5. Key support is established at $123.05 (August 29 low), which coincides with the breakout level from the prior consolidation range. Immediate resistance sits at $142.57 (September 5 high), with a decisive breach potentially targeting the $150 psychological threshold. The absence of reversal patterns like doji or evening stars suggests continued bullish bias, though overextension risks remain after the sharp ascent.
Moving Average Theory
The 50-day, 100-day, and 200-day moving averages are aligned bullishly, with the 50-day SMA crossing above the 200-day SMA (Golden Cross) in mid-2025, reinforcing a long-term uptrend. As of September 5, the price trades well above all three SMAs, indicating robust upward momentum. The 50-day SMA ($110.50) now acts as dynamic support, while the progressively steepening slope of shorter-term averages underscores accelerating buying pressure.
MACD & KDJ Indicators
The MACD histogram shows expanding bullish momentum, with the MACD line maintaining its position above the signal line since late August. Concurrently, the KDJ oscillator registers an overbought condition (K: 88, D: 85, J: 94), typically signaling near-term exhaustion. However, sustained KDJ values above 80 during strong trends can persist, suggesting pullbacks may be shallow. A bearish divergence would arise if price makes new highs while KDJ declines, but no such signal is currently present.
Bollinger Bands
Volatility has expanded as price rides the upper Bollinger Band (20-day SMA: $125.70, upper band: $145.20), a characteristic of strong trending phases. This follows a band contraction in late August, which resolved upward. While trading near the upper band often precedes consolidation, the absence of reversal candles tempers immediate downside expectations. A mean-reversion move toward the 20-day SMA ($125) could offer tactical entry opportunities if volume supports the bounce.
Volume-Price Relationship
Volume surged to 14.1 million shares during the September 4 rally (7.4% gain), validating the breakout. Subsequent days saw lower but above-average volume, confirming trend sustainability without overt distribution. The elevated volume on up days versus down days since the August 20 low ($105.99) underscores accumulation. A drop below the 50-day average volume during advances would warn of weakening momentum.
Relative Strength Index (RSI)
The 14-day RSI reads 76, entering overbought territory (>70). While this flags short-term overheating, RSI can remain elevated in strong trends, as seen during CRDO’s February-March 2025 rally where RSI held above 75 for weeks. Traders should monitor for bearish divergence or a break below 70 to signal cooling momentum, but the primary trend remains intact absent a decisive RSI reversal.
Fibonacci Retracement
Applying Fibonacci levels to the recent swing low ($105.99 on August 20) and high ($142.57 on September 5), key retracement supports emerge at $130.90 (23.6%), $124.30 (38.2%), and $119.10 (50%). The 23.6% level aligns with the September 4 low ($132.73), reinforcing its significance. A deeper pullback toward $124.30 would test the breakout point and 20-day SMA, offering high-probability support. Longer-term Fib levels drawn from the 2024 low ($24.38) place major resistance near $150 (161.8% extension).
Confluence & Divergences
Confluence at $124.30–125.00 (38.2% Fib, 20-day SMA, and prior consolidation resistance-turned-support) establishes a critical support zone. Divergences are limited, though the KDJ’s overbought reading mildly conflicts with MACD’s persistent bullish momentum. Volume confirmation during rallies reduces the weight of this divergence. Absent deterioration in volume or breakdown of the $124.30 support, the path of least resistance favors continuation after a potential consolidation phase.