Seagate Technology Jumps 8.53% In Two Days As Technicals Signal Bullish Momentum

Seagate Technology (STX) rose 3.02% in the latest session, extending its gains to 8.53% over two consecutive days amid strong bullish momentum. This analysis assesses key technical dynamics shaping its trajectory.
Candlestick Theory
The recent price action reveals a significant bullish gap between 2025-09-26’s high ($220.82) and 2025-09-29’s low ($224.81), now acting as immediate support near $220–$225. The formation of two consecutive bullish candles closing near session highs ($229.14 and $236.06) signals strong buying pressure, with resistance now forming around the new peak of $236.51. A break below the gap could target deeper support near $213 (September low), while sustained closes above $237 may extend the uptrend.
Moving Average Theory
A bullish alignment persists across key moving averages, with the 50-day SMA positioned above the 100-day and 200-day SMAs. The current price ($236.06) trades well above all three, confirming a robust long-term uptrend. Recent bounces off the 50-day SMA (during late-August/early-September pullbacks) underscore its role as dynamic support. This structure suggests underlying strength, though overextension risk exists if the price deviates sharply from the 50-day SMA.
MACD & KDJ Indicators
The MACD line maintains a position above its signal line, reinforcing bullish momentum. However, the indicator’s plateau despite price acceleration hints at potential near-term exhaustion. Concurrently, KDJ’s %K and %D lines hover near overbought territory (above 80) after recent surges, suggesting heightened sensitivity to profit-taking. While both oscillators support the uptrend, their stretched readings warrant caution for short-term reversals.
Bollinger Bands
Volatility expansion is evident as price touches the upper Bollinger Band (2SD above the 20-day SMA) amid the two-day rally. Band width has notably increased since late September, reflecting accelerating momentum. Price trading near the upper band implies overbought conditions, though such extensions can persist in strong trends. A contraction or pullback toward the middle band ($~225) could offer healthier entry points.
Volume-Price Relationship
Volume surged 106% above the 10-day average during the initial 5.35% rally (2025-09-29), validating breakout conviction. Follow-up volume on the subsequent 3.02% gain was 18% below average, suggesting modest participation in the extension. While the initial volume surge supports sustainability, consistently declining volume on further rallies could signal fatigue. High-volume rejections near $236 resistance would amplify near-term bearish cues.
Relative Strength Index (RSI)
The 14-day RSI has climbed sharply to approximately 72, crossing into overbought territory. Historically, STX has sustained RSI levels above 70 during strong trend phases (e.g., July 2025 rally), but reversions below 70 often preceded consolidations. While momentum favors bulls, RSI’s overbought warning advises against aggressive new longs. Divergence would emerge if price makes higher highs while RSI trends lower.
Fibonacci Retracement
Applying Fibonacci levels to the swing low ($151.23 on 2025-08-11) and recent high ($236.51) identifies critical retracement zones. The 23.6% level ($216.38) aligns with the late-September gap and served as support during the 2025-09-26 pullback (low: $213.06). Confluence here strengthens its significance. Deeper supports emerge at 38.2% ($203.93) and 50% ($193.87). Upside extensions beyond $236.51 could target the 138.2% level ($257), though overbought signals advise monitoring pullback risks first.
Confluence and Divergence
Confluence appears at $216–$225 (Fibonacci 23.6% + gap support), offering a high-probability bounce zone. The MACD/KJ/RSI alignment in overbought territory, coupled with slowing volume momentum, creates a divergence risk against price’s vertical ascent. This cautions that near-term consolidation is likely needed before further sustained upside.
Overall Outlook:
Multiple indicators confirm STX’s bullish trend, but overextended readings (RSI, Bollinger Bands) and volume divergence elevate near-term reversion risks. Key support at $216–$225 should hold to preserve upside structure. A restabilization phase could precede the next leg toward $250+. Traders should monitor volume on pullbacks for accumulation signals and RSI for bearish divergences.