Micron Technology Shares Jump 5.84% as Technical Indicators Signal Strong Bullish Momentum

Micron Technology (MU) shares surged 5.84% to close at $196.54 in the most recent session, reflecting strong bullish momentum. This comprehensive technical analysis examines key indicators and their implications for future price action.
Candlestick Theory
Recent candlestick patterns reveal significant bullish momentum. The October 1st session formed a decisive bullish marubozu (open near low, close near high) on high volume, breaking through $182 resistance. The October 8th candle similarly closed near its high ($196.54 vs. $196.95 high), rejecting the prior day's bearish engulfment. Key support now resides at $185 (October 7th low), while resistance appears at the psychological $200 level and the $201 swing high (October 6th).
Moving Average Theory
The moving average configuration confirms a robust uptrend. The 50-day MA slopes upward near $165, with the 100-day MA at $145 and 200-day MA near $120 – both trending higher. The price trades significantly above all three moving averages, while the 50/100-day golden cross in July reinforces bullish structure. Such alignment suggests any pullbacks may find support near the 50-day MA.
MACD & KDJ Indicators
MACD (12,26,9) shows a strengthening bullish crossover, with the histogram expanding positively since mid-September. However, KDJ (9,3,3) presents overbought signals, with the %K line at 87 and %D at 82. While MACD indicates sustained momentum, the KDJ reading suggests near-term exhaustion risk. This divergence warrants caution despite MACD’s bullish bias.
Bollinger Bands
Bollinger Bands (20-day, 2σ) expanded sharply during the early October rally, reflecting heightened volatility. The recent close above the upper band ($192) indicates extreme bullish momentum. Historically, such deviations preceded short-term consolidation (e.g., mid-July and late August). Band expansion continuing could signal extended upside, while contraction would suggest a consolidation phase.
Volume-Price Relationship
Volume confirms bullish sentiment. Breakout days (October 1: +8.86% on 41.7M shares; October 8: +5.84% on 26M shares) featured above-average volume. Notable accumulation occurred during the September 11th surge (+7.55% on 52.4M shares), establishing institutional interest. Declining volume during minor pullbacks (e.g., October 2-3) signals limited selling pressure, supporting trend sustainability.
Relative Strength Index (RSI)
The 14-day RSI reads 73, entering overbought territory. Historically, RSI levels above 70 (observed in early April, June, and August) preceded 5-10% corrections. While this may indicate near-term exhaustion, RSI can remain elevated in strong trends. The divergence with the higher August high in price (current $196 vs. August $128) mitigates immediate reversal concerns.
Fibonacci Retracement
Applying Fibonacci levels to the April low ($63.70) and current high ($201):
- 23.6%: $164
- 38.2%: $147
The price decisively reclaimed the 23.6% level in August, transforming it into support. The recent consolidation near $185 aligns with the 23.6% retracement of the June-October rally. Confluence between the $185 Fibonacci support and October 7th low creates a critical technical floor.
Confluence and Divergence Synthesis
Confluent bullish signals appear at $185 support, where Candlestick Theory, Fibonacci, and volume analysis align. The moving average stack and MACD reinforce the primary uptrend. Notable divergence emerges between momentum oscillators (KDJ/RSI warning of overbought conditions) and trend-following indicators (MACD/MAs). While this suggests potential near-term consolidation, the weight of evidence favors buying dips above $185. A decisive break above $201 resistance would likely trigger extended upside toward the 127.2% Fibonacci extension near $220.