Micron Stock Jumps 3.75% As Technicals Signal Bullish Rebound

Micron Technology (MU) shares advanced 3.75% in the most recent session, closing at $124.42 with a high of $125.45 and low of $121.95. This analysis employs multiple technical frameworks to assess the stock's trajectory.
Candlestick Theory
The price action reveals a bullish engulfing pattern formed over the last two sessions—a down day closing at $119.92 on July 7 was followed by an up day that fully eclipsed the prior candle’s range. This signals potential near-term strength. Key resistance is established at the recent swing high of $129.85 (June 26), while support converges around $119.00, reinforced by the July 7 low of $118.91 and the 50-day moving average.
Moving Average Theory
The 50-day SMA (~$119), 100-day SMA (~$110), and 200-day SMA (~$100) are aligned in a bullish configuration, with the shorter averages above the longer-term ones. The current price trades above all three, confirming an intermediate uptrend. A minor inflection occurred recently as the price dipped below the 50-day SMA but swiftly reclaimed it, suggesting this average is serving as dynamic support.
MACD & KDJ Indicators
The MACD histogram has moderated its negative slope after a bearish crossover last week, hinting at waning downward momentum. The KDJ oscillator exited oversold territory (K=35, D=28, J=49) on July 8, reflecting improving short-term momentum. Neither indicator shows strong divergence relative to price, though a sustained recovery in MACD above its signal line would reinforce bullish momentum.
Bollinger Bands
Bollinger Band width expanded notably during the July 1–8 volatility spike, suggesting directional conviction. The price rebounded sharply after testing the lower band ($119 zone), closing near the upper band ($127) and the 20-day SMA ($123). This compression-then-expansion sequence typically precedes sustained moves, with band expansion supporting the breakout attempt.
Volume-Price Relationship
Recent volume dynamics enhance the bullish case: the 3.75% advance on July 8 occurred on 26.2 million shares—significantly above the 10-day average volume of 23 million—indicating conviction behind the rebound. The prior down day (July 7) saw lighter volume (19.1 million), suggesting limited enthusiasm for the pullback. Volume expansion on rallies remains a consistent feature of the uptrend.
Relative Strength Index (RSI)
The 14-day RSI rebounded sharply from 38 (near-neutral) to 52 after the July 8 rally, recovering from briefly oversold readings (<30) earlier in the week. While not yet overbought (>70), this swift recovery from oversold territory suggests selling pressure has eased. Traders should note that RSI divergence has been absent during recent price consolidations.
Fibonacci Retracement
Using the June 26 high ($129.85) and July 7 low ($118.91), key retracement levels emerge. The July 8 close ($124.42) surpasses the 50% retracement ($124.38), approaching the 61.8% level at $125.67. The 38.2% retracement ($123.09) now serves as near-term support, while the 61.8% level aligns with the July 8 high ($125.45), creating a technical resistance cluster.
Concluding Synthesis
Technical confluence is observed at $119–$121, where the 50-day SMA, Bollinger Band support, and the July 7 low converge—reinforcing a critical bull-defense zone. Momentum oscillators (RSI, KDJ) and volume confirm the rebound, while MACD’s stabilization hints at downside exhaustion. The break above the 50% Fibonacci level suggests strength, but decisive clearance of $125.45–$125.67 resistance is needed to invalidate the recent consolidation. Absent bearish divergences, the weight of evidence leans bullish, though volatility expectations remain elevated per Bollinger Band dynamics.