Pure Storage Rises 2.99% to $88.25 Extending 4-Day Rally to 7.10%

Pure Storage (PSTG) advanced 2.99% to close at $88.25 on October 2, 2025, marking its fourth consecutive daily gain and a cumulative 7.10% rise over this period. This recent momentum occurs against a backdrop of significant volatility, including a 32.34% surge on August 28, 2025, and tests of key technical levels examined below.
Candlestick Theory
The current four-day bullish run features consecutively higher closes with minimal upper wicks, indicating sustained buying pressure. Resistance is evident at $88.50 (August 28 high), which capped upside on October 2. Support emerges near $82.00, aligning with September 26-29 consolidation lows. The breakout above September 24’s high ($85.99) confirmed bullish continuation bias, though the current proximity to the $88.50 swing high may invite profit-taking.
Moving Average Theory
Pure Storage trades decisively above major moving averages: the 50-day (near $82.00), 100-day ($75.50), and 200-day ($65.00). The 50-day provided support during September’s consolidation, while the sequence of the 50-day above the 100-day, both above the 200-day, confirms a long-term bullish trend. The narrowing spread between the 50-day and 100-day averages in September suggested potential consolidation, which resolved bullishly with the current rally.
MACD & KDJ Indicators
The MACD histogram turned positive in late September, with the signal line crossing above zero—a bullish momentum confirmation. KDJ’s K-line (currently ~85) and D-line (~80) show sustained overbought readings, supporting near-term upside momentum. No bearish divergence is present, though KDJ’s persistent elevation suggests consolidation may develop after four consecutive gains.
Bollinger Bands
Price recently breached the upper Bollinger Band (20-period, 2σ) near $87.50, historically a precursor to short-term consolidation. Band width contracted in mid-September, indicating reduced volatility before the current expansion phase. Consecutive closes above the upper band suggest strong momentum, but reversion toward the $84.50 midline could occur to relieve overextension.
Volume-Price Relationship
Recent gains are validated by rising volume, with October 1 turnover ($345M) exceeding the 20-day average. The August 28 surge recorded the year’s highest volume ($1.59B), cementing $80.50 as a high-conviction support zone. Volume on down days (e.g., September 26, -1.28%) has been comparatively muted, indicating limited selling pressure during pullbacks.
Relative Strength Index (RSI)
The 14-day RSI reads 68, approaching overbought territory (>70) but below the August peak of 86. While not yet signaling exhaustion, its ascent alongside price lacks negative divergence. Traders should monitor for potential bearish RSI divergence if prices make new highs without corresponding momentum strength, which could foreshadow a reversal.
Fibonacci Retracement
Using the swing low of $55.53 (August 20) and high of $88.50 (August 28), key Fibonacci levels emerge. The 23.6% retracement ($80.40) contained September’s pullback, reinforcing it as critical support. The current rally faces resistance at the 0% extension ($88.50). A decisive close above this level may target the 127.2% extension near $95.00, while failure here could retest the 38.2% level ($76.50).
Confluence and Divergence Observations
Confluence exists at $85.00, where the breakout aligns with the 50-day moving average, Fibonacci support, and a high-volume node. Multiple indicators—MACD crossover, volume-backed breakout, and moving average alignment—buttress the bullish trend. The sole divergence emerges between RSI (approaching overbought) and Bollinger Bands (price exceeding upper bounds), warning of short-term overextension without negating the broader uptrend. Should PSTG clear $88.50 with volume expansion, the technical structure would favor continuation toward $95.00, though profit-taking near current levels remains plausible given momentum oscillator readings.