KLA Surges 3.5% to 873.29 as Bullish Reversal Tests Key Resistance at 876.66

KLA (KLAC) advanced 3.48% to close at 873.29 in the latest session, rebounding strongly from the prior day’s low of 832.24 to test the 876.66 resistance level. This price action initiates our technical assessment.
Candlestick Theory
The most recent candle forms a robust bullish engulfing pattern, entirely subsuming the prior two sessions’ ranges and closing near the session high (876.66). This follows a hammer-like formation on 2025-09-03 (low: 832.24, close: 843.90), suggesting reversal confirmation. Key resistance is evident at the June 2025 swing high of 924.23, while 832.24 establishes immediate support. A breach above 876.66 may trigger momentum toward 897–900 resistance, a zone tested repeatedly in late August.
Moving Average Theory
KLA maintains an uptrend above all critical moving averages: the 50-day MA (∼850), 100-day MA (∼820), and 200-day MA (∼780). The current price trades 2.7% above the 50-day MA, signaling short-term bullish momentum. The 50/200-day golden cross formed in early Q2 2025 remains intact, reinforcing the structural uptrend. Near-term support converges at the 50-day MA and psychological 850 level.
MACD & KDJ Indicators
MACD (12,26,9) shows a nascent bullish crossover, with the histogram turning positive after the latest surge. KDJ’s %K (77) has crossed above %D (68) from oversold territory (<30 one week prior), confirming momentum recovery. Both oscillators align in signaling accelerating upside potential. However, KDJ’s proximity to overbought territory (>80) warrants monitoring for consolidation. No material divergences are observed.
Bollinger Bands
Price rebounded sharply from the lower Bollinger Band (∼830) on 2025-09-03, contracting volatility (bandwidth narrowed 15% in two weeks) before expanding with the breakout. The close near the upper band (∼880) suggests short-term overextension. A consolidation phase between 860–880 may develop before further directional commitment.
Volume-Price Relationship
The 3.48% surge occurred on 813k shares, slightly below the 30-day average volume (∼950k), indicating moderate participation. However, this follows two distribution days (e.g., 1.24M shares on 2025-09-02’s 2.94% decline), suggesting selling pressure absorption. Sustained advances require volume expansion above 1M shares to validate durability.
Relative Strength Index (RSI)
The 14-day RSI (∼62) exited oversold territory (<30 on 2025-09-03) and now approaches neutral. This sharp recovery from oversold aligns with the bullish candlestick reversal. While not overbought (70+), the rapid RSI ascent may precede consolidation. Notable bearish divergence preceded the August correction (RSI peaked at 72 vs. price high of 924.23), highlighting its efficacy in warning of reversals.
Fibonacci Retracement
Applying Fib levels to the primary uptrend from 753.69 (2024-10-01 low) to 924.23 (2025-08-15 high) reveals key thresholds: The 38.2% retracement (855) underpinned the late August pullback, while the 61.8% level (825) nearly aligned with the recent 832.24 low. Confluence exists at 890–897 (23.6% retracement and horizontal resistance), making this a critical breakout zone.
Confluence and Probabilistic Outlook
Multiple indicators align at 832–840 support (candlestick low, Bollinger lower band, Fib 61.8%), strengthening this floor’s technical significance. Upside momentum faces resistance confluence at 890 (Bollinger upper band/Fib 23.6%) and 897 (horizontal resistance). A decisive close above 900 would likely activate bullish targets toward 924, though overbought oscillators and volume constraints suggest near-term consolidation is probable. Bearish invalidation occurs below 825, which would violate the Fibonacci safety net and reactivate the downtrend.