Credo Technology Surges 19.89% In Five Days Nearing 52-Week High

Credo Technology (CRDO) recently demonstrated significant upward momentum, closing at $147.53 on September 8, 2025, with a 4.76% single-day gain. This marked the fifth consecutive daily advance, culminating in a 19.89% surge over the trailing five sessions amid elevated trading volumes. The price action reflects robust bullish sentiment as the stock approaches its 52-week high of $149.08 recorded in the same session.
Candlestick Theory
Recent sessions reveal a pronounced bullish pattern, culminating in a series of long green candles during the five-day rally. The September 4th session ($134 close) formed a bullish engulfing pattern above the $122.10-$127.28 consolidation range, which now serves as immediate support. Resistance is evident near the psychological $150 level, validated by the September 8th high of $149.08 rejecting further upside. Historical rejections around $131 (August 28) and $142 (September 5) have transitioned to support, demonstrating technical polarity shifts.
Moving Average Theory
The 50-day, 100-day, and 200-day moving averages exhibit robust bullish alignment. Current price action ($147.53) trades substantially above the 50-DMA ($118.21), 100-DMA ($94.37), and 200-DMA ($70.18), confirming a sustained uptrend. The 50-DMA crossed above both longer-term averages in Q2 2025, establishing a "golden cross" configuration. Recent bounces near the 50-DMA (e.g., August 26 at $120.10) underscore its role as dynamic support during pullbacks.
MACD & KDJ Indicators
The MACD (12,26,9) shows bullish momentum, with the MACD line maintaining above the signal line since late August. Histogram bars are expanding, corroborating accelerating upside strength. Concurrently, the KDJ oscillator registers overbought territory with a K-value of 85 and D-value of 82 (September 8), though readings have remained elevated for four sessions without immediate reversal signals. This divergence between sustained overbought KDJ and strengthening MACD suggests momentum could persist briefly before potential consolidation.
Bollinger Bands
Bollinger Bands (20-day, 2σ) highlight expanding volatility, with the September 8th close touching the upper band ($146.80). This follows a bandwidth contraction in late August (price range $120-$124), signaling a volatility breakout. While touching the upper band often precedes short-term pullbacks, the absence of reversal candles implies upward pressure may persist. The 20-day moving average ($130.72) now acts as intermediate support.
Volume-Price Relationship
Volume trends validate the bullish breakout. The rally days (September 4th: 14.06M shares, September 5th: 7.24M shares, September 8th: 7.07M shares) occurred on above-average volume versus the 30-day mean of 5.82M. Notably, the September 4th surge on 14.06M shares—the highest volume since June 3rd—confirms institutional participation. Volume divergence is absent, as pullbacks (e.g., August 29 decline) transpired on lower volumes.
Relative Strength Index (RSI)
The 14-day RSI reads 82.5, deeply entrenched in overbought territory. Historically, similar RSI peaks (>80) in June 2025 and August 2025 preceded 8-12% corrections. However, RSI’s current warning diverges from MACD and volume confirmation, creating a tension between momentum signals. While a pullback probability has increased, the absence of bearish candlestick patterns suggests overbought conditions alone may not trigger immediate reversals.
Fibonacci Retracement
Applying Fibonacci to the dominant uptrend from $24.26 (September 9, 2024) to $149.08 (September 8, 2025) reveals critical retracement levels. The 23.6% ($118.50) and 38.2% ($99.20) levels recently anchored pullbacks—notably the August retracement bottomed at $116.16 (near 23.6% support). The 50% level at $86.67 aligns with the July consolidation zone. Current proximity to all-time highs leaves minimal near-term Fibonacci resistance, though profit-taking could retest $135-$138 (0% retracement of the recent leg up from August).
Confluence and Divergence Assessment
Multiple indicators converge on bullish momentum: moving averages confirm the uptrend, MACD shows accelerating strength, and volume supports sustainability. Key divergences exist between overbought RSI/KDJ readings and price action, alongside Bollinger Band expansion near record highs. This suggests near-term consolidation or shallow pullbacks toward $135-$138 may develop to alleviate overbought pressures before resumption of the primary trend. The $122-$127 candlestick support and $118.50 Fibonacci level provide critical downside cushions.