Micron Technology Surges 7.55% to 150.57 Marking Seventh Straight Gain Amid 27% Weekly Rally

Micron Technology (MU) has demonstrated remarkable bullish momentum in the most recent session, surging 7.55% to close at 150.57. This marks the seventh consecutive day of gains, culminating in a 27.08% rally over the past week. The price action reflects strong investor confidence, as shares tested a new high of 156.26 before settling near the day’s midpoint. This analysis employs multiple technical frameworks to evaluate the sustainability of the move and identify key inflection points.
Candlestick Theory
The seven consecutive bullish candles culminating in a long green body (open: 147.61, close: 150.57) and an extended upper wick to 156.26 signal robust demand, though rejection at the 156.26 high indicates near-term resistance. A clear support zone emerges near 124.21 (2025-09-04 low), coinciding with the origin of the current rally. The unfilled gap between 138.34 and 142.23 (2025-09-10 low/high) now serves as secondary support. Resistance is crystallizing at 156.26, while a sustained close above it could open the path to further gains.
Moving Average Theory
The stock trades decisively above all key moving averages (50-day, 100-day, 200-day), confirming a long-term bullish trend structure. The 50-day MA recently crossed above the 200-day MA in late August 2025, forming a golden cross that reinforces bullish sentiment. More critically, the 50/100/200-day MAs are stacked bullishly (shortest to longest), with price action maintaining a significant distance above the 50-day average. This alignment suggests strong trend persistence, though mean reversion toward the 100-day MA (dynamic support near 118) remains possible after such an extended rally.
MACD & KDJ Indicators
The MACD histogram displays accelerating positive momentum, with both the MACD line and signal line in bullish territory and diverging. Concurrently, the KDJ oscillator reveals overbought conditions (K and D values >80) after the 27% weekly surge. While this suggests near-term exhaustion risk, no bearish divergence is present—price and momentum indicators are aligned. The KDJ’s sustained elevation implies strength, but a pullback to reset these conditions appears increasingly probable, potentially offering consolidation before further upside.
Bollinger Bands
Price has pierced the upper Bollinger Band (20-period, 2σ) during the rally, indicating overextension. Recent bandwidth expansion reflects escalating volatility, typically preceding significant directional moves. The failure to close above the upper band at 156.26 reinforces this resistance, implying consolidation may occur near the band’s midline (20-day MA). A contraction in bandwidth would signal declining volatility and possible stabilization. The bands’ current width suggests trend continuation remains plausible if support near 148 holds.
Volume-Price Relationship
Volume surged 103% on the most recent up day (52.3M shares vs. 25.8M prior), validating the breakout’s strength. Throughout the rally, ascending volume accompanied rising prices—notably, the September 5th upswing saw 28.4M shares (+52% above average), confirming institutional participation. However, the rapid price ascent on relatively lower volume during mid-rally sessions (e.g., September 8–10) reveals intermittent caution, warranting vigilance for volume degradation on pullbacks to gauge conviction.
Relative Strength Index (RSI)
The 14-day RSI is estimated at 78–82 following the 7-day rally, deep in overbought territory (>70). Historically, MU’s RSI has periodically exceeded 80 during strong uptrends (e.g., April 2025’s 20% surge saw RSI peak at 84), but reversions below 70 often triggered 5–8% pullbacks. While overbought RSI readings alone don’t indicate imminent reversal, they highlight frothy short-term conditions. Traders should monitor for RSI divergences on any retracement for early trend-exhaustion signals.
Fibonacci Retracement
Applying Fibonacci levels to the rally from the significant trough at 94.46 (2025-05-30 low) to the 156.26 peak reveals critical retracement supports. The 23.6% level (147.02) aligns with the current session’s low (147.61), while the 38.2% level (141.48) coincides with the September 10th gap. The 50% level (135.41) and 61.8% level (129.34) converge with key moving averages and prior consolidation zones, offering strategic entry points if profit-taking materializes.
Confluence and Divergence Observations
Notable confluence exists at 141–142, where Fibonacci support (38.2%), the unfilled gap, and the 100-day MA converge—a critical zone for buyers to defend. Resistance at 156.26 gains technical significance from Bollinger Band rejection and candlestick wick formation. Presently, no major divergences exist; momentum (MACD), trend (MAs), and sentiment (volume) align bullishly. The primary risk remains the overextended RSI and KDJ readings, which historically precede short-term consolidations even within enduring uptrends.