Micron Technology Extends 16.35% Rally on Bullish Candlestick Patterns and Golden Cross Momentum

Micron Technology (MU) has experienced a 4.47% surge on the most recent session, extending a four-day rally with a cumulative gain of 16.35%. This sharp upward move, characterized by higher highs and higher lows, suggests a strong bullish momentum. The recent price action, particularly the formation of long white candles with limited shadowing, indicates conviction among buyers, reinforcing a potential continuation of the uptrend. Key support levels appear to be consolidating around the $223–$226 range, as evidenced by multiple bounces in late October and early November, while resistance has been dynamically shifting higher, with the current upper boundary near $264.
Candlestick Theory

The recent price structure exhibits a bullish engulfing pattern, where the last candle’s body completely engulfs the preceding bearish candle, signaling a reversal from prior weakness. Additionally, the absence of significant bearish shadows in the past four days underscores strong buying pressure. Critical support levels to monitor include the $223–$226 zone (a confluence of prior lows and Fibonacci retracement levels) and the $207–$210 area, which has historically acted as a floor during volatility. Resistance is now testing the $264–$265 range, with a breakout likely to target the $270–$280 psychological barrier.
Moving Average Theory
Short-term moving averages (50-day and 100-day) have crossed above the 200-day MA, forming a golden cross, which historically signals a bullish trend. The 50-day MA currently sits at approximately $235, while the 200-day MA is near $220, indicating a healthy upward bias. However, the 100-day MA at $230 suggests that the stock may consolidate within a $230–$240 range before resuming higher. The alignment of these moving averages with Fibonacci retracement levels (notably the 61.8% retracement at $240) creates a confluence of support, increasing the probability of a sustained rally.
MACD & KDJ Indicators
The MACD histogram has expanded positively, with the MACD line ($15.2) well above the signal line ($8.7), confirming momentum. A bullish crossover in early December further strengthens the case for continuation. The KDJ indicator shows the stock is in overbought territory, with the stochastic %K at 82 and %D at 78, but no bearish divergence has emerged yet. This suggests the uptrend remains intact, though traders should watch for a potential pullback if the %K line fails to outperform price highs.
Bollinger Bands
Volatility has surged, with the 20-period Bollinger Bands widening to reflect the recent 16.35% move. The price is currently near the upper band at $264.75, indicating overbought conditions. However, the absence of a prior contraction (squeeze) means this expansion is more a reflection of sustained momentum than a warning of exhaustion. A retest of the middle band ($246.8) could offer a buying opportunity if volume remains robust.
Volume-Price Relationship
Trading volume has spiked during the recent rally, peaking at 21.96 million shares on December 10, validating the strength of the move. However, volume has not yet reached the levels seen during the October–November surge (e.g., 63 million shares on October 16), suggesting participation may be tapering. A drop in volume during the next leg higher could signal waning conviction, while a surge in volume during a pullback would confirm renewed buying interest.
Relative Strength Index (RSI)
The 14-day RSI is in overbought territory at 72, consistent with the 16.35% gain over four days. While this typically warns of a potential correction, the RSI has remained above 60 for much of the past month, indicating a strong uptrend. A bearish signal would require a breakdown below 60 or a divergence (e.g., lower RSI highs despite higher price highs). For now, the RSI aligns with the bullish case, but caution is warranted if it fails to hold above 65 during a pullback.
Fibonacci Retracement
Applying Fibonacci levels from the October 31 low ($223.77) to the December 10 high ($263.71), key retracement levels include 23.6% ($250.4), 38.2% ($245.8), and 61.8% ($237.8). The current price is above the 23.6% level, suggesting the rally is in its early stages. A retest of the 38.2% retracement at $245.8 could act as a critical support, with a break below threatening the 61.8% level ($237.8).
Confluence and Divergence
The most compelling confluence occurs at the $240–$245 range, where the 100-day MA, Fibonacci 38.2% retracement, and prior support from late November align. A successful hold above this zone would reinforce the bullish case. Divergence to watch includes a potential bearish twist if the RSI or KDJ indicators form lower highs while the price continues higher, signaling weakening momentum.

In summary, Micron Technology is in a strong uptrend supported by bullish candlestick patterns, golden cross moving averages, and overbought momentum indicators. While the RSI and Bollinger Bands suggest caution around overbought levels, the confluence of support at $240–$245 and robust volume during the recent rally provide a high-probability scenario for continuation. Traders should monitor for divergences in momentum indicators and volume patterns to assess the sustainability of the move.