On Semiconductor Jumps 5.61% As Bullish Technicals Signal Upside Breakout

On Semiconductor (ON) rose 5.61% to close at $53.88 on June 16, 2025, marking a robust recovery from the prior session’s decline and establishing a key bullish candlestick pattern. This move occurred within a volatile range, setting the stage for a multidimensional technical assessment.
Candlestick Theory
A bullish engulfing pattern emerged on June 16, as the session’s white candle fully consumed the prior day’s bearish body, signaling strong buying pressure after testing the $52.21–$51.02 support zone. Key resistance is evident near $54.38 (June 10 high), while critical support rests at $50.48–$50.00, reinforced by the June 13 low ($50.94) and the psychological $50 level. The recent volatility around these levels reflects a battleground between buyers and sellers, with the engulfing candle favoring upside continuation if $54.38 is breached.
Moving Average Theory
The current price trades above the 50-day, 100-day, and 200-day moving averages, confirming a bullish long-term trend structure. Notably, the 50-day MA (near $49) provided dynamic support during the June 13 pullback, facilitating the subsequent rebound. The alignment of shorter-term averages above longer-term ones (50 > 100 > 200) signals sustained upward momentum. A decisive break above $54.38 may accelerate the uptrend, while failure risks a retest of the 50-day MA.
MACD & KDJ Indicators
The MACD histogram is recovering from a bearish dip, with the signal line flattening near the zero line, suggesting weakening downward momentum. A bullish crossover appears imminent if buying persists. The KDJ oscillator exited oversold territory (<20) on June 13, with the %K line (now ~85) crossing above %D, indicating strengthening short-term momentum. No material divergence exists, but overbought KDJ readings (>80) warrant caution if the rally extends sharply.
Bollinger Bands
Bollinger Bands are expanding after a period of contraction in early June, reflecting resurgent volatility. Price action is probing the upper band ($54.00–$54.50), with a sustained close above this level potentially triggering a volatility breakout. The middle band (20-day SMA near $51.50) now acts as dynamic support, aligning with the key $50.48–$51.02 zone.
Volume-Price Relationship
Volume surged to 28.2 million shares during the June 4 breakout (+6.14%), validating upside momentum. The June 16 rebound saw moderate volume (8.3 million), slightly below the June 13 sell-off volume (9.7 million), suggesting cautious accumulation. The convergence of high-volume up days (June 3–4, June 9–10) with price gains underscores underlying demand, though diminishing volume on recent rallies requires monitoring for sustainability.
Relative Strength Index (RSI)
The 14-day RSI (currently ~65) rebounded from neutral levels (45–50), avoiding oversold territory during the June 13 decline. This reflects resilient momentum but lacks extreme readings that would flag overbought (>70) or oversold (<30) conditions. RSI divergence is absent, supporting the price’s bullish structure. Nevertheless, a surge above 70 may precede short-term consolidation near the $54.38 resistance.
Fibonacci Retracement
Applying Fibonacci to the May 5 low ($38.41) and June 10 high ($54.38), the 78.6% retracement at $50.48 underpinned the June 13 reversal. The current price is testing the 100% extension level ($54.38). A decisive close above this threshold opens the path to the 127.2% extension ($58.10). Conversely, rejection here may prompt a retracement toward the 61.8% level ($48.10), though the confluence of moving averages and volume support near $50.48 offers a robust floor.
Concluding Synthesis
Multiple indicators converge favorably: the bullish engulfing candle, moving average support, KDJ recovery, and Fibonacci bounce at $50.48 align with upside potential. Resistance at $54.38 (Bollinger upper band and Fibonacci 100%) presents the immediate hurdle—a breakout here, validated by strong volume, could propel ON toward $58.10. Divergence is limited, though overbought KDJ/RSI readings near resistance warn of near-term consolidation. Vigilance around volume trends and the $50.48–$54.38 range remains critical for trend confirmation.