Micron Technology Rises 5.76% Extending Three-Day Rally to 10.88% on Strong Technical Momentum

Micron Technology (MU) concluded its most recent session with a notable 5.76% gain, extending its winning streak to three consecutive days and accumulating a 10.88% increase over this period. This surge signals heightened bullish momentum, prompting a multi-faceted technical assessment using the provided historical data.
Candlestick Theory
The recent price action presents a sequence of three strong bullish candles, culminating in a long white candle closing near its high on September 5th ($131.37). This pattern suggests robust buying pressure overcoming selling attempts, especially notable after breaking above the prior swing high resistance near $124.50-$125 (established around August 14th). Immediate resistance now lies near the psychologically significant $130-$132 zone, reinforced by the session high of $131.41. Support is evident around the $124.20 level (September 4th close), aligning with the breakout point, followed by stronger support near $118-$120, where consolidation occurred previously and the 50-day moving average resides.
Moving Average Theory
The moving averages depict a strongly bullish configuration. The 50-day MA (calculated ~$116.50) is rising sharply above the ascending 100-day MA (~$106.80) and the 200-day MA (~$96.40). This 'stacked' order signals a powerful intermediate to long-term uptrend. Crucially, the price has decisively pulled away from the 50-day MA during this recent surge, showing strong short-term momentum. The sustained price position well above all three key moving averages reinforces the long-term positive bias. The 200-day MA sloping upward provides significant long-term support.
MACD & KDJ Indicators
The MACD line is firmly above its signal line and well entrenched in positive territory, confirming robust bullish momentum. The histogram shows consistent heightening, indicating accelerating upward momentum. KDJ reflects overbought territory, with K and D lines in the high 80s. While overbought KDJ readings caution against near-term exhaustion, they can persist during strong uptrends. The sustained high levels currently align with the strong MACD, suggesting momentum is not yet peaking, though a potential slowing signal from KDJ warrants monitoring for divergence.
Bollinger Bands
Bollinger Bands have expanded significantly following the recent sharp rally, reflecting a substantial increase in volatility. Price is riding the upper band, a classic sign of a strong uptrend, indicating persistent buying pressure. While trading near the upper band can precede pullbacks, the sustained breakout above prior band width (when price was range-bound around $115-$125) is positive. A key watchpoint is whether price can hold above the middle band (20-period SMA, roughly $121.50) on any pullback. Further consolidation or a retreat would likely see bands contract.
Volume-Price Relationship
Volume has increased notably during the three-day surge, validating the bullish price move. The volume on September 5th (over 28 million shares) was significantly higher than during the preceding sideways to slightly up days. This expanding volume on rising prices demonstrates strong conviction from buyers. The highest volume peak since April occurred during the late June/early July price peak near $126-$127. The current volume surge, while substantial, hasn't surpassed that level yet, which will be crucial to monitor for sustaining the advance above previous highs. Rising volume support on any retest of the $124-$125 breakout zone would be a positive sign.
Relative Strength Index (RSI)
The 14-period RSI, calculated using the formula [Average Gain / (Average Gain + Average Loss)] 100, is currently around 68. This places it just below the traditional overbought threshold of 70. The rising trajectory confirms strengthening bullish momentum. While not yet overbought, it is approaching levels where consolidation or minor pullbacks often occur, especially when rising sharply as seen here. However, like KDJ, RSI can remain elevated in powerful trends. The divergence in March-April 2025 (higher highs in price vs. lower highs on RSI) preceded a significant correction, serving as a reminder of its value as a potential, though not infallible, warning signal against waning momentum.
Fibonacci Retracement
Establishing a Fibonacci retracement from the March 21st significant low ($84.16) to the April 9th significant peak ($127.75) provides key levels. The recent breakout pushed the price above the critical 61.8% retracement level of this swing ($111.12), which now becomes strong support if retested. Current price action has now approached the 78.6% retracement level near $132. This zone ($132-$135), coupled with the psychological $130-$132 resistance identified via candlesticks, represents the next significant potential hurdle. A sustained move above this confluence zone would open the path towards testing the prior April high near $127.75 (which would become the new swing high target).
Confluence & Divergence
Significant confluence exists at the $130-$132 zone, identified by the recent candlestick resistance and the Fibonacci 78.6% retracement level. A decisive close above this area, preferably on robust volume, would be a very bullish development. Minor confluence for support is found near $124-$125 (recent breakout level and previous resistance, aligning broadly with the 50-day MA slope). While momentum indicators (MACD, RSI, KDJ) are generally aligned with the price uptrend currently, the KDJ registering overbought status hints at potential for near-term consolidation or pullback. No significant bearish divergence is currently evident, though the RSI nearing overbought warrants attention for any negative divergence developing if the price makes new highs without corresponding momentum.