Micron Technology Rallies 18.16% On Bullish Momentum Testing Key $142 Resistance

Candlestick Theory
Micron Technology exhibits a robust bullish sequence, closing at $140 on September 10, 2025, marking six consecutive bullish candles with a cumulative 18.16% gain. This rally formed after a Hammer pattern near $118.72 on September 3, which reversed prior downtrend pressure. Key resistance is established at $142.24 (recent high), while support converges at $131.37 (September 5 low) and $124.21 (September 4 close). The extended rally without significant retracement warns of potential exhaustion, particularly as prices test the psychological $140–$142 zone.
Moving Average Theory
Short-term momentum remains decisively bullish, with the 50-day MA ($116) sloping upward and acting as dynamic support. The stock trades well above all major moving averages—100-day ($109) and 200-day ($99)—confirming a sustained long-term uptrend. A bullish Golden Cross materialized in late August when the 50-day crossed above the 100-day MA, amplifying positive sentiment. The current price/MA alignment signals strong trend momentum, though a significant deviation from the 50-day MA (~8% above) suggests potential near-term consolidation.
MACD & KDJ Indicators
The MACD (12,26,9) shows sustained bullish momentum, with the MACD line above the signal line and both trending upward since early September. However, the histogram’s magnitude has slightly diminished despite higher highs in price—a minor negative divergence hinting at decelerating bullish momentum. The KDJ oscillator (period 9) remains in overbought territory (K: 85, D: 82, J: 91), reinforcing near-term caution. While trend strength persists, overbought KDJ readings increase vulnerability to pullbacks, particularly if volume support wanes.
Bollinger Bands
Volatility expansion is evident, with price riding the upper Bollinger Band ($138–$142) during the six-day rally. Bandwidth widened sharply from mid-August as prices broke above the 20-day SMA, signaling strong directional momentum. Current proximity to the upper band ($142) implies short-term overextension. Historically, Micron has reverted toward the 20-day SMA (now $131) after such deviations, suggesting band-touch events may precede consolidation.
Volume-Price Relationship
Volume surged to 25.4M shares on September 10, significantly above the 20-day average (19.2M), validating upside momentum. This volume spike aligns with the breakout above $135–$138 resistance, confirming buyer conviction. Notably, the September 5 advance on 28.4M shares (highest in 30 days) initiated the rally, highlighting institutional accumulation. Declining volume on minor pullbacks (e.g., September 8) further supports bullish undertones.
Relative Strength Index (RSI)
The 14-day RSI reads 75, marginally above the overbought threshold. This reflects strong momentum but coincides with six consecutive up days—historically a precursor to minor reversals. RSI diverged mildly from price on September 9–10 (price higher highs vs. RSI lower highs), introducing caution. While not a definitive reversal signal, overbought RSI in this context may invite profit-taking near $142 resistance.
Fibonacci Retracement
Using the swing low of $94.46 (May 30) and high of $142.24 (September 10), key Fibonacci levels emerge. The 23.6% retracement aligns with $131.50, converging with the September 5 low and 20-day SMA—a major support zone. The 38.2% level at $124.30 matches the September 4 consolidation base. These Fib clusters reinforce $131.50 and $124.30 as critical downside cushions. Upside extension targets the 127.2% Fib level at $151 if $142 is decisively breached.
Confluence and Divergence
Confluence: Multiple indicators align at $131.50–$135 support (50-day MA, 23.6% Fib, and September 5–8 consolidation). Volume-backed breaks above $142 could accelerate gains toward $150. Divergence: MACD histogram and RSI show subtle bearish divergences against recent price highs, while KDJ overbought signals conflict with unbroken trend strength. Overall, Micron’s technical structure remains bullish, but overbought oscillators and band proximity advocate for guarded optimism near-term. A healthy retest of $131.50–$135 would rejuvenate bullish momentum.