Micron Rises 2.84% Amid Technical Signals Of Volatile Momentum

Micron Technology (MU) rose 2.84% to close at $111.87 in the latest session, trading between $110.79 and $115.28 on volume of 18.99 million shares. This price action occurs against a backdrop of volatile momentum, with the stock having retreated from its June high of $129.85 to test support near $104 in early August before the current rebound. The technical landscape exhibits several notable confluences and divergences as follows.
Candlestick Theory
The August 7 session formed a shooting star pattern, characterized by a long upper wick (testing $115.28) and close near the low of the day ($111.87) following a 2.84% advance. This suggests rejection of the $115-$116 resistance zone and potential near-term bearish pressure. Key support resides at $106.75 (August 6 low) and $104.88 (August 1 low), while resistance is reinforced near $115.28. A confirmed close below $110.79 would strengthen the shooting star’s bearish implications.
Moving Average Theory
The 50-day moving average (approximately $112.50) is converging downward toward the rising 100-day moving average (approximately $105.50), indicating weakening intermediate momentum. The current price trades below the 50-day MA but above the 100-day MA, reflecting conflict between short-term bearish and longer-term bullish pressures. The impending 50/100-day moving average crossover may signal a trend shift if the price sustains below the 50-day level.
MACD & KDJ Indicators
MACD shows a potential bullish crossover as the histogram turns upward, indicating recovering momentum. However, KDJ readings present a divergence: The %K line (near 75) has entered overbought territory while the MACD remains in neutral, suggesting limited follow-through buying pressure. This dichotomy warns that the current rebound may lack conviction despite short-term bullish momentum.
Bollinger Bands
Price tested the upper Bollinger Band ($115.28) before retreating, confirming that zone as resistance. The bands are expanding after a contraction phase in late July, indicating rising volatility. The close near the middle band ($110) signals consolidation but leaves room for directional resolution. A sustained move above $113 would confirm bullish momentum, while failure at $110 may revisit the lower band ($104).
Volume-Price Relationship
The rebound from the $104.88 low has seen increasing volume, culminating in the 18.99 million shares traded during the 2.84% gain on August 7. This volume surge validates upside momentum and supports the breakout above the $109-110 resistance zone. However, the August 1 sell-off (-3.90% on 24 million shares) indicates lingering selling pressure at key resistance levels.
Relative Strength Index (RSI)
The 14-day RSI reads 45, neutral after recovering from near-oversold (27) on August 1. While rising from oversold often signals reversals, the current reading suggests room for further upside before overbought conditions emerge. RSI divergence from price during the June-July downtrend (lower lows in price vs. higher lows in RSI) may foreshadow a bullish reversal, though confirmation requires a break above 55.
Fibonacci Retracement
Using the June high of $129.85 and August low of $103.38 as anchor points, key Fibonacci levels include 23.6% ($109.63), 38.2% ($113.49), and 50% ($116.62). The current price is consolidating above the 23.6% retracement, supported by volume. Confluence exists at the 38.2% level ($113.49), which aligns with the July 31 high and the 50-day MA, making it critical resistance for bullish continuation.
Confluence and Divergence Notes
Confluent bullish signals emerge at $109-110, where Fibonacci support aligns with volume-backed price stabilization and the rising 100-day MA. Bearish confluence appears near $115, combining the August 7 shooting star, upper Bollinger Band, and July resistance. The primary divergence remains between KDJ’s overbought signal and neutral MACD/RSI readings, suggesting potential near-term consolidation. Volume patterns generally support the current recovery, but decisive confirmation would require a sustained close above $113.49 with similar volume intensity. Probabilistically, the weight of evidence suggests a neutral-bias in the very near term, with bullish resolution more likely upon clearing $113.49 resistance.