Arista Networks Rallies 17.79% in Four Days as Technicals Signal Strong Bullish Momentum

Current Trading Activity
Arista Networks (ANET) concluded the most recent session with a 5.48% gain, marking its fourth consecutive daily advance and a cumulative 17.79% rally over this period. This momentum suggests renewed bullish sentiment, though comprehensive technical context is warranted.
Candlestick Analysis
The four-day rally features a sequence of elongated green candles, culminating in a June 26 close near the session high ($101.59 vs. high of $102.12). This pattern indicates strong buying pressure. Notably, the June 23 session formed a hammer candle (low: $85.58, close: $91.95), signaling reversal potential after the preceding decline. Immediate resistance is evident near $102.12 (June 26 high), while $97.59 (June 26 low) and $94.50 (June 25 low) offer short-term support.
Moving Average Analysis
The 50-day SMA (approx. $94) aligns with June’s swing lows, reinforcing its role as dynamic support. Crucially, the current price ($101.59) holds above all major moving averages (50, 100, 200-day), confirming an established uptrend. A bullish Golden Cross materialized in May 2025 (50-day crossing above 200-day), further validating long-term momentum. The ascending 200-day SMA (~$85) provides a structural floor.
MACD & KDJ Assessment
The MACD shows a strengthening bullish crossover (signal line undercut by histogram expansion), supporting continued upside potential. However, KDJ registers overbought conditions (K: 89, D: 85), hinting at near-term exhaustion. While MACD affirms trend strength, KDJ divergence suggests consolidation may precede further gains.
Bollinger Bands Evaluation
Bands expanded sharply during the June 23–26 rally, reflecting heightened volatility. Price currently rides the upper band, indicating strong directional momentum. The absence of band contraction since late May 2025 implies sustained trend integrity. A retreat toward the middle band (~$94) could offer entry opportunities if supported by volume.
Volume-Price Analysis
Recent gains are validated by rising volume, peaking at 13.05M shares on June 26. The 17.79% four-day surge coincided with consistently above-average volume, confirming institutional participation. Earlier sell-offs (e.g., January 27: -22.35% on 33.28M shares) demonstrated capitulation, while June’s recovery volume signals accumulation.
RSI Interpretation
The 14-day RSI (~68) approaches overbought territory but remains below the 70 threshold, leaving room for additional upside. While not yet signaling exhaustion, proximity to overbought levels warrants vigilance, particularly given KDJ’s similar warning. RSI divergence against price is absent, preserving trend reliability.
Fibonacci Retracement
Using the April 2025 low ($314.31) and the recent June 26 high ($102.12), key retracement levels emerge:
- 61.8% level at $87.10: Coincides with June 23 close ($91.95), now acting as major support.
- 38.2% level at $96.80: Mirrored the June 9 resistance-turned-support.
Current price trades above the 78.6% retracement ($101.50), targeting the full extension of the swing high at $102.12. A decisive close above $102 may accelerate gains toward the $105 psychological barrier.
Confluence & Divergence Observations
Confluence: The $94–$95 zone (50-day SMA, volume-weighted support, and June 23 swing low) represents critical support, reinforced by Fibonacci and moving average alignment. Breakout confirmation above $102 would be strengthened by MACD momentum and volume conviction.
Divergence: KDJ overbought signals contrast with MACD’s bullish histogram expansion, implying short-term consolidation risk despite the overarching uptrend. RSI neutrality tempers immediate bearish interpretations.
Conclusion
Arista Networks exhibits robust bullish momentum, validated by multi-indicator confluence (moving averages, volume, MACD, and Fibonacci). While overbought oscillators (KDJ) and proximity to the $102 resistance hint at possible consolidation, the primary trend remains upward. Traders may monitor $102.12 for breakout confirmation, with pullbacks toward $95–$97 offering potential risk-controlled entry points, provided volume and moving average supports hold.