Ubiquiti Rises 3.21% To $627.02 As Technicals Signal Bullish Continuation

Ubiquiti (UI) gained 3.21% to close at $627.02 in the latest session, marking a two-day rally of 4.87%. This analysis examines key technical indicators to assess the stock’s trajectory.
Candlestick Theory
Recent price action shows a bullish reversal pattern. The 2025-09-17 session formed a hammer candle near the $590 support level, followed by two consecutive white candles with higher closes. This signals rejection of lower prices and suggests potential continuation of the uptrend. Key resistance is evident at the all-time high of $627.80, while support converges near $590 (recent swing low) and $575.
Moving Average Theory
Ubiquiti trades significantly above all major moving averages, confirming a strong uptrend. The 50-day SMA (approximately $540), 100-day SMA ($470), and 200-day SMA ($390) slope upward with price maintaining >15% distance above the 200-SMA. The recent bounce off the 50-SMA indicates this level serves as dynamic support. The ascending order of averages (50>100>200) validates the bullish long-term structure.
MACD & KDJ Indicators
The MACD histogram turned positive on 2025-09-18 as the signal line crossed bullishly after a brief dip below zero. Concurrently, the KDJ oscillator exited oversold territory (below 20) three sessions prior, with the K-line (now near 75) crossing above the D-line. This momentum shift suggests strengthening buying pressure. However, both indicators approach overbought zones, which may cap near-term upside.
Bollinger Bands
Bollinger Bands (20-day) show a volatility expansion after a contraction phase in early September. Price breached the upper band on 2025-09-18, indicating potential short-term overextension. The bandwidth expansion confirms renewed directional strength, though a reversion toward the midline ($585) could occur before further upside. The upper band near $625 aligns with the current resistance.
Volume-Price Relationship
Volume increased 9.5% during the two-day rally, confirming bullish conviction. Notably, the 2025-08-22 breakout (30% gain) occurred on volume triple the 30-day average, validating that key upward move. Recent down days (e.g., 2025-09-16’s -2.7%) saw lower volume than preceding up days, suggesting lack of strong selling pressure. This volume asymmetry supports the prevailing uptrend.
Relative Strength Index (RSI)
The 14-day RSI rebounded from neutral (48) to 65 within three sessions, reflecting accelerating momentum. While not yet overbought (>70), the current reading implies limited near-term upside before consolidation. Importantly, RSI has maintained a base above 40 during corrections since May 2025, indicating sustained bullish momentum without exhaustion signals.
Fibonacci Retracement
Applying Fib levels to the rally from the 2024-09-20 low ($211.90) to the 2025-09-18 high ($627.80), key retracement zones emerge: 23.6% ($529.97), 38.2% ($468.91), and 50% ($419.85). The recent September pullback found precise support at the 23.6% level ($590), demonstrating its technical relevance. These levels provide strategic entry zones during corrections.
Confluence and Divergence Observations
Bullish confluence appears at $590, where candlestick support, the 50-SMA, and the 23.6% Fibonacci level converge. Volume confirmation of the latest breakout and MACD/KDJ momentum alignment further strengthen this support. No significant bearish divergences are observed, though Bollinger Band expansion and RSI near 65 warrant caution for potential short-term consolidation. The primary trend remains decisively bullish, with any pullback to $590-$600 offering a high-probability entry zone supported by multi-indicator consensus.