Micron Technology Jumps 4.74% on Heavy Volume as Technicals Signal Bullish Momentum

Micron Technology (MU) closed at $127.87 in its most recent session, marking a significant gain of 4.74%. This upward movement occurred on above-average volume of 23.47 million shares, suggesting notable buying pressure heading into the close. The session established a higher high compared to recent days, breaking above the $124.96-$128.10 range.
Candlestick Theory
Recent price action reveals constructive developments. The session ending 2025-06-24 formed a robust bullish candlestick with a full body, closing near its high. This follows a hammer-like formation on 2025-06-23 (long lower shadow, close near open/high after probing $119.81). These candles, occurring near the rising trendline visible since the late April low near $64, suggest buyers are defending the short-term trend. Immediate resistance is identified at the session high of $128.10, aligning with the early June peak of $128.1. A confirmed break above this level targets $130-$132. Key support lies near $124 (the June 20th swing low and recent consolidation area), followed by the more significant $120 psychological and technical level tested multiple times in early/mid-June and late May. The $115 level, representing the May rebound high and April consolidation zone, offers stronger support further down.
Moving Average Theory
The 50-day, 100-day, and 200-day moving averages exhibit a bullish alignment (50>100>200), confirming the primary uptrend remains intact. Price currently trades decisively above all three key averages. The 50-day MA ($120.15 approx.) provided dynamic support during the early June pullback and subsequent consolidation, while the 100-day MA ($112.50 approx.) and the 200-day MA ($108.20 approx.) are sloping upwards well below the current price. This configuration is supportive of further upside, with the 50-day MA acting as the primary dynamic support level during pullbacks. The distance between price and the slower MAs indicates the trend has momentum but is not excessively extended yet compared to longer-term averages.
MACD & KDJ Indicators
The MACD (12,26,9) currently shows a bullish crossover above the signal line, though the histogram bars are flat/slightly waning – suggesting upside momentum might be plateauing but not reversing yet. The MACD line remains above the zero line. The KDJ indicator (likely 9,3,3) depicts a potentially overbought condition; the K and D lines are above 80, and the J line is above 100. While this signals strong short-term momentum, it often precedes potential consolidation or a minor pullback, especially if the J line hooks downward from extreme levels. The KDJ's trajectory needs monitoring for potential bearish crosses that could signal a near-term pause.
Bollinger Bands
Price action closed near the upper Bollinger Band ($127.50 approx., calculated using 20-day SMA and 2 Std Dev), typically signaling strength but also hinting at short-term overextension relative to recent volatility. The bands have been widening since the breakout from the mid-June consolidation (around $120), reflecting increasing volatility to the upside. The midline of the bands (20-day SMA ~ $122.40) serves as an immediate support level. Continued price hugging or moving above the upper band would be strong bullish signals; conversely, a move back towards the midline would signal consolidation within the uptrend. The widening bands support the continuation of the trend direction.
Volume-Price Relationship
Recent volume analysis is supportive. The 4.74% rally on June 24th occurred on volume significantly higher than the prior down session (23.47M vs 21.38M shares), providing validation. The sharp rally off the lows in early April and mid-May also saw spikes in volume, confirming accumulation. Notably, the pullback in early June occurred on generally declining volume, a sign the downmove lacked conviction. The highest volume cluster since April occurred during the late May surge ($92-$102), potentially indicating a significant support base. Overall, volume patterns largely confirm the prevailing bullish price action, with accumulation on rallies and distribution lacking during pullbacks.
Relative Strength Index (RSI)
The 14-day RSI is calculated to be approximately 64 based on recent price changes. This places it above the neutral 50 level but still comfortably below the overbought threshold of 70. This indicates positive momentum is intact but not yet reaching warning levels associated with being overextended. The RSI has retreated from a brief touch near 70 around the June 10th peak ($114.92) and is trending upwards again. It maintains a pattern of higher lows alongside price higher highs since the major April low, confirming the underlying uptrend. Current levels leave room for further upside before traditional overbought conditions develop.
Fibonacci Retracement
Applying Fibonacci retracement to the major swing low of April 4th ($64.72) to the swing high of June 26th ($144.07) identifies key retracement levels as support during pullbacks. The price convincingly held above the critical 38.2% retracement level near $111.00 during its June decline, finding a bottom at $113.66 on June 13th. The 50% retracement sits near $104.40 and the 61.8% near $97.85. Current price action is testing the area just below the 23.6% retracement level near $128.10. Successfully reclaiming $128.10 (which coincides with the recent session high and resistance) could pave the way for an attempt towards the prior high of $144.07. The confluence of this Fibonacci level and candlestick resistance at $128.10 makes it a critical zone for bulls to overcome.