Micron Stock Rises 3.6% to $122 on Bullish Technicals and Heavy Volume

Current Trading Update
Micron Technology (MU) advanced 3.61% to $122.00 on 2025-08-28, marking its third consecutive daily gain with a cumulative 4.79% rally. This upward momentum occurred alongside above-average volume of 17.25 million shares, suggesting conviction in the breakout.
Candlestick Theory
Recent candlesticks reveal a bullish reversal pattern. The last three sessions formed a "Three White Soldiers" configuration—consecutive ascending closes with minimal upper wicks—indicating sustained buying pressure. Resistance is evident near $124.25 (July 2025 high), while support emerges at $116.50 (August 2025 swing low). A decisive close above $124.25 would validate bullish continuation, whereas failure to hold $120 may signal consolidation.
Moving Average Theory
The 50-day SMA ($113.20) maintains an upward slope above the 100-day SMA ($106.80) and 200-day SMA ($98.50), confirming a long-term bullish trend. The current price ($122.00) trades above all three moving averages, reinforcing strength. A "golden cross" (50-day crossing above 200-day) occurred in January 2025, structurally supporting the uptrend. Short-term dips toward the 50-day SMA may present buying opportunities, assuming the primary trend holds.
MACD & KDJ Indicators
The MACD (12,26,9) shows a bullish crossover, with the histogram expanding above the signal line. This aligns with accelerating upside momentum. KDJ (9,3,3) registers K at 85 and D at 75, entering overbought territory but not yet divergent from price. While this suggests near-term exhaustion risk, sustained bullish MACD momentum may delay a pullback.
Bollinger Bands
Volatility is expanding as price approaches the upper Bollinger Band ($123.80, 20-day SMA +2σ). The bands had contracted through mid-August 2025, culminating in the current breakout. A close above the upper band would signal extreme bullishness but heighten short-term reversion risk. Support resides at the 20-day SMA ($117.40), now sloping upward.
Volume-Price Relationship
Volume surged 12% above the 30-day average during the three-day rally, confirming bullish conviction. Notably, distribution days were absent during the August dip, with sell-offs occurring on below-average volume. This volume profile supports the sustainability of the uptrend, provided accumulation persists near key resistance.
Relative Strength Index (RSI)
The 14-day RSI sits at 68, approaching overbought territory (70+) but not yet signaling divergence. Elevated yet non-extreme RSI levels historically accompanied Micron’s strongest rallies during this cycle. However, traders should monitor for bearish divergence if new highs form with declining RSI.
Fibonacci Retracement
Using the swing low of $64.72 (2025-04-04) and high of $124.25 (2025-07-14), key retracement levels are: 61.8% ($103.80), 50% ($94.50), and 38.2% ($85.20). Recent consolidation respected the 61.8% support ($103.80) before the current breakout. The 127.2% extension level aligns with major resistance at $135—a plausible upside target should $124.25 be breached.
Confluence & Divergence Observations
Confluence exists at $116–$118, where the 50-day SMA, swing low support, and 61.8% Fibonacci retracement converge—solidifying this as a strong demand zone. No significant bearish divergences are evident; MACD, RSI, and KDJ momentum broadly align with price. However, Bollinger Band expansion and overbought KDJ readings near $124 resistance warrant caution despite volume-supported bullishness.
Probabilistic Outlook
Micron Technology exhibits robust technical structure, with multiple indicators supporting further upside if $124.25 resistance is convincingly cleared. Sustained volume-backed momentum may target the $135 Fibonacci extension. Short-term pullbacks toward $116–$120 should find accumulation support, though failure to hold this zone may trigger profit-taking toward the 100-day SMA ($106.80).