Credo Technology Soars 24.37% In Six Days To Record High Amid Bullish Technicals

Credo Technology (CRDO) surged 7.41% in the most recent session, marking its sixth consecutive day of gains with a cumulative 24.37% advance over this period, closing at $131.82 and establishing a new high of $134.35. This robust upward momentum forms the foundation for the following technical analysis.
Candlestick Theory
Recent price action shows a strong breakout pattern, with the current session forming a long bullish candle following a consolidation between $100.06 (August 20 low) and $119.50 (August 18 high). The decisive break above $119.50 – now a key support level – confirms bullish conviction, while $134.35 stands as immediate resistance. Higher lows throughout the advance suggest sustained buying pressure.
Moving Average Theory
The current price trades significantly above all major moving averages, signaling a strong uptrend. The 50-day MA ($116.52) and 100-day MA ($101.67) exhibit positive slopes, confirming robust intermediate momentum. Crucially, the 200-day MA ($76.34) slopes upward, validating the long-term bullish trend. The ascending alignment of shorter averages above longer ones (50 > 100 > 200) constitutes a "golden cross" configuration, reinforcing bullish bias.
MACD & KDJ Indicators
The MACD (8.15) remains above its signal line (6.80) with a widening histogram, reflecting accelerating bullish momentum. However, KDJ shows overbought conditions with %K (92.6) and %J (94.8) above 90, suggesting potential near-term exhaustion. This divergence between MACD's sustained bullish momentum and KDJ's overbought warning warrants caution for pullback risks despite the prevailing uptrend.
Bollinger Bands
Price trades near the upper Bollinger Band ($137.90) with the 20-day average ($119.50) sloping upward. Bandwidth expansion from recent consolidation indicates increasing volatility, typically supportive of continuation patterns. While the current close below the upper band avoids extreme overextension, the proximity to this resistance level may invite short-term profit-taking.
Volume-Price Relationship
The breakout is validated by strong volume dynamics, with recent sessions showing higher volume on up days (notably August 28 at 4.87M shares) compared to pullbacks. Cumulative volume over the six-day rally outpaced the preceding decline, confirming institutional participation. However, the highest volume day occurred during the August 19 sell-off (5.91M shares), establishing $100-106 as a high-conviction support zone.
Relative Strength Index (RSI)
The 14-day RSI (61.8) remains neutral, avoiding overbought territory (>70) despite sharp gains. This divergence from the overextended KDJ reading reflects the calculation's sensitivity to recent volatility. The moderate RSI reading, coupled with strong momentum indicators, suggests room for additional upside before technical exhaustion.
Fibonacci Retracement
Applying Fibonacci to the recent swing low ($100.06 on August 20) and high ($134.35) yields key levels: 23.6% ($126.26), 38.2% ($121.25), and 50% ($117.21). The current price holding above the 23.6% level supports bullish continuity. Confluence exists at $119.50 (previous resistance now support) aligning with the 38.2% retracement and the 50-day MA, establishing a critical support zone. The breach of these levels would signal trend weakness.
Concluding Synthesis
Multiple indicators confirm Credo Technology's strong bullish trend, with moving average alignment, MACD momentum, volume confirmation, and Fibonacci support confluence near $119.50 providing technical underpinning. However, KDJ overbought signals and resistance at $134.35 suggest potential near-term consolidation. Traders should monitor the $126.26 Fibonacci level as immediate support – a sustained break below this level may trigger profit-taking toward the $119.50 confluence zone. The overall technical structure favors continuation above $134.35 upon successful consolidation, though prudent risk management remains advisable given overbought oscillators.