Monolithic Power Jumps 3.34% To 738.55 On Technical Breakout

Monolithic Power (MPWR) rose 3.34% to $738.55 on July 28, 2025, marking a two-day consecutive gain of 3.58% amid elevated trading volume. This advance occurs within a broader technical context defined by recent volatility, requiring multi-indicator analysis.
Candlestick Theory
The July 28 session formed a decisive bullish candle closing near its high ($738.55 vs. high of $741.07), following a consolidation period between $700 and $720. The price action invalidated immediate resistance at $737.76 (July 21 high) and established new support at $720-$722, confirmed by the session's low. This breakout candle suggests bullish conviction, though sustainability requires confirmation against the July peak of $778.86.
Moving Average Theory
The 50-day SMA (approx. 700), 100-day SMA (approx. 660), and 200-day SMA (approx. 650) maintain a bullish ascending order, confirming the primary uptrend. The current price trades above all three key averages, with the 50-day SMA providing dynamic support during the July pullback. Recent bullish momentum is underscored by the price reclaiming the 50-day SMA after breaching it briefly mid-month.
MACD & KDJ Indicators
The MACD histogram shows tentative bullish convergence as it approaches a zero-line crossover, suggesting waning bearish momentum. Concurrently, the KDJ oscillator registers an overbought signal with the K-line (88) and D-line (83) crossing above 80. While this indicates near-term exhaustion risk, both momentum oscillators lack bearish divergence – price and momentum are rising in tandem. Caution is warranted if KDJ sustains above 80 through subsequent sessions.
Bollinger Bands
The 20-period Bollinger Bands expanded during the July 28 breakout, reflecting increasing volatility after the contraction phase in late July. Price closed near the upper band (approx. $745), typically signaling overbought conditions. Historically, such expansions preceded short-term pullbacks (notably in early June and July), but band expansion amid breakout closes may indicate continuation rather than reversal.
Volume-Price Relationship
Volume surged 98% to 545k shares on July 28, validating the breakout with the highest volume since July 15. This contrasts with the preceding three sessions' declining volume during consolidation, indicating accumulation. The volume profile shows consistent buying pressure above $700, though sustainability concerns emerge if volume retreats below 400k shares during advances.
Relative Strength Index (RSI)
The 14-day RSI (approx. 67) approaches overbought territory but remains below the 70 warning threshold. RSI progression aligns with price action without divergence, though proximity to overbought levels suggests limited near-term upside without consolidation. Notably, RSI held above 40 during recent pullbacks, preserving bullish momentum structure.
Fibonacci Retracement
Applying Fibonacci to the swing low of $686.87 (July 16) and high of $778.86 (July 9) shows the current price trades between the 61.8% ($751) and 50% ($732) retracement levels. The July 28 close near the 61.8% resistance converges with the psychological $750 barrier. A decisive break above $751 may trigger momentum toward the 78.6% level ($769), while failure could retest $715-$720 support.
Confluence and Divergence
Confluence exists between the moving average structure, volume-backed breakout, and Fibonacci 50% support around $732, reinforcing bullish bias. However, Bollinger Band expansion at the upper band and KDJ overbought readings conflict with sustained advance potential. Key divergence lies in RSI's failure to reach overbought levels during the July price peak (RSI 65 vs. current 67), indicating comparatively stronger momentum now. Resolution above $750 with sustained volume may override bearish oscillator warnings, while rejection could trigger profit-taking toward $715-$720.