Micron Technology Shares Jump 6.28% as Technicals Signal Strong Bullish Momentum

Micron Technology (MU) shares surged 6.28% in the most recent session, marking two consecutive days of gains totaling 9.29%, with price action showing strong recovery momentum after testing the $111.67 support level.
Candlestick Theory
Recent price action reveals significant technical structure. The August 8 candle formed a bullish hammer pattern with a long lower wick ($111.67 low vs $118.89 close), confirming robust support near $110-112 after the prior session’s rejection at $115.28 resistance. This zone now serves as a critical support confluence. Immediate resistance is established at the $119.33 swing high, while sustained closes above $120 would signal breakout potential. The preceding three sessions formed a small consolidation pattern resolved bullishly with expanding range, suggesting accumulation.
Moving Average Theory
The 50-day moving average (MA) has maintained an upward slope, confirming an intermediate bullish trend. Crucially, the 50-day MA crossed above both the 100-day and 200-day MAs in late 2024, establishing a golden cross that structurally supports the broader uptrend. Recent pullbacks consistently found support at the 50-day MA ($108.50 zone), while the 200-day MA ($90-95 range) serves as long-term foundational support. The current price trades above all three key MAs (50, 100, 200-day), with the ascending alignment signaling persistent bullish momentum.
MACD & KDJ Indicators
The MACD histogram shows diminishing bearish momentum, with the signal line flattening near the zero axis after a bullish crossover in early August, suggesting waning selling pressure. Concurrently, the KDJ oscillator exited oversold territory (K=32, D=28, J=40) during the recent rebound. While not yet overbought (K=68), the sharp reversal in %K and %J lines indicates accelerating upside momentum. This momentum confluence aligns with the candlestick breakout, though MACD’s neutral positioning warrants monitoring for potential divergence if prices stall near resistance.
Bollinger Bands
Volatility expansion is evident as prices rebounded from the lower band ($110.79 on Aug 7) toward the upper band ($119.34). The bands widened notably during the 9% two-day surge, confirming strong directional conviction. Current price sits near the upper band (118.89 vs upper band ~119.50), which may induce near-term consolidation. However, the bandwidth expansion following prior contraction (late July) signals a sustainable impulse leg provided support at the 20-period midline (~$115) holds.
Volume-Price Relationship
Volume surged 52% during the August 8 rally (28.96M shares vs 19.0M prior), validating bullish conviction as prices reclaimed the $118 threshold. Notably, distribution days in late July (e.g., July 31: 29.2M shares on -4.88% decline) gave way to accumulation patterns, with the two-day advance occurring on progressively higher volume. The volume-weighted average price (VWAP) for the breakout period aligns with the $115-118 support zone, reinforcing its technical significance.
Relative Strength Index
The 14-day RSI rebounded sharply from near-oversold territory (43.6 on Aug 1) to 62.5 currently, reflecting strengthening momentum without excessive extension. While not yet overbought (>70), the velocity of the RSI ascent warrants caution if resistance tests coincide with readings above 65. The indicator’s recovery above 50 neutral zone supports bullish continuation, with prior oversold conditions (RSI=30.2 in April) having marked major inflection points.
Fibonacci Retracement
Applying Fib levels to the April 9 low ($84.68) and August 8 high ($119.33) reveals key confluences. The recent pullback found support near the 23.6% retracement ($110.50), aligning with the candlestick support zone. The 38.2% level ($106.40) overlaps with the 50-day MA and represents major downside support. Upside targets include the 161.8% extension near $130, though immediate overhead resistance emerges at the psychological $120 threshold and the 78.6% projection at $123.50.
Confluence and Divergence Observations
Multiple indicators converge at the $110-112 support zone (hammer low, VWAP, 23.6% Fib, volume node), establishing a critical technical floor. The momentum confirmation from RSI, KDJ, and volume-backed price action strengthens the breakout thesis. A notable positive divergence emerged in late July when price made lower lows while MACD histogram printed higher lows, foreshadowing the current recovery. Primary watchpoints include Bollinger Band containment above $115 and MACD’s ability to sustain its nascent bullish crossover as prices test the $119-120 resistance cluster.