Micron Technology (MU) Shares Surge 3.36% as Bullish Candlestick Patterns Golden Cross and Fibonacci Levels Signal Potential Reversal from Prior Downtrend

Candlestick Theory
Micron Technology (MU) has exhibited strong bullish momentum in recent sessions, with a 3.36% surge on the most recent trading day. Key candlestick patterns, such as the hammer (e.g., December 15) and morning star (e.g., November 24), suggest potential reversals from prior downtrends. Support levels are evident at $236 (December 15 low) and $226 (November 26 low), while resistance aligns with the December 29 high of $294.5 and the December 26 high of $290.87. The recent rally appears to be consolidating within a bullish channel, with bearish engulfing patterns observed during pullbacks (e.g., December 26), indicating strong buying pressure at key support levels.
Moving Average Theory
Short-term (50-day) and long-term (200-day) moving averages show a bullish crossover in late December, with the 50-day MA crossing above the 200-day MA—a golden cross signal.

The 100-day MA reinforces this trend, currently above both the 50-day and 200-day lines. The 200-day MA has historically acted as dynamic support, with the price rebounding off it in early December (e.g., December 19). However, the 50-day MA now sits at ~$270, suggesting the trend remains intact as long as the 200-day MA ($255–$260 range) holds.
MACD & KDJ Indicators
The MACD histogram has expanded positively in recent sessions, confirming bullish momentum, while the signal line (9-day EMA) has crossed above the MACD line—a potential buy signal. The KDJ (Stochastic oscillator) shows %K crossing above %D in oversold territory (December 17) and again in early January, suggesting short-term reversals. However, the RSI (discussed below) has recently entered overbought territory (>70), creating a divergence between momentum indicators and price. This warns of a potential pullback, especially if the MACD histogram begins to contract.
Bollinger Bands
Volatility has increased sharply, with the bands expanding after a period of contraction in late November. The price has remained near the upper band for three consecutive sessions, indicating overbought conditions. A retrace toward the middle band ($260–$270) may occur, but the narrowest band contraction on December 19–22 suggests a high-probability breakout. The current price of $294.37 sits 13% above the 20-day moving average, a level historically associated with mean reversion risks.
Volume-Price Relationship
Trading volume has surged in recent bullish sessions, with the most recent day’s $7.5 billion volume exceeding the 14-day average by 20%. This validates the strength of the rally, particularly given the 4.01% gain on December 22 (volume: $8.48 billion). However, volume has declined in the past two sessions (December 26–29) despite rising prices, hinting at waning conviction. Divergence between volume and price could signal a near-term correction, though the overall volume profile remains supportive of an uptrend.
Relative Strength Index (RSI)
The RSI has entered overbought territory (>70) for the first time since mid-December, indicating potential exhaustion in the rally. Historical data shows the RSI frequently peaked near 70 before corrections (e.g., December 19). While the current reading does not necessarily signal an immediate reversal, a failure to retrace below 70 would suggest the trend remains robust. Caution is warranted if the RSI diverges from price action, such as a new high in price without a corresponding RSI high.
Fibonacci Retracement
Key Fibonacci levels derived from the December 29 high ($294.5) to the November 26 low ($226) include 23.6% at $277, 38.2% at $271, and 61.8% at $253. The current price of $294.37 is near the 23.6% level, suggesting a potential pullback to $277 or $271 could occur. If the price holds above $253 (61.8%), the uptrend remains intact. Notably, the December 19 low ($265.92) aligns with the 50% retracement level, offering a critical support zone.