Elevance Health Rises 3.02% to $350.5 Extending Six-Day 10.67% Rally

Elevance Health (ELV) closed at $350.5, rising 3.02% and marking its sixth consecutive daily gain, accumulating a 10.67% advance over this period. This strong upward momentum sets the context for the following technical assessment.
Candlestick Theory
A sequence of six bullish candles demonstrates persistent buying pressure, culminating in the most recent session establishing $357 as immediate resistance and $341.09 as minor support. Key resistance now converges near the $357-$360 zone, aligning with the 2025-10-02 high. The absence of bearish reversal patterns suggests underlying strength, though the extended rally warrants caution for potential exhaustion signals if near-term resistance holds.
Moving Average Theory
The recovery above key EMAs signals trend improvement. Current price ($350.5) trades above the 50-day EMA (~$328), 100-day EMA (~$315), and 200-day EMA (~$335), confirming a bullish alignment. The 50-day crossing above the 200-day (Golden Cross) in late September reinforces a structural uptrend. Sustained trading above these moving averages, particularly the 200-day, underpins positive momentum.
MACD & KDJ Indicators
MACD shows a bullish configuration with the signal line above the zero line and an expanding histogram, reflecting accelerating upward momentum. However, the KDJ indicator diverges slightly as the K and D lines (hovering near 85) enter overbought territory, while price achieves higher highs – a potential warning of slowing momentum. Though MACD strength dominates near-term signals, KDJ’s overbought condition warrants monitoring for bearish crossovers.
Bollinger Bands
Price currently tests the upper band (~$352), having recently emerged from a volatility contraction phase. This expansion signals active trend participation. Acceptance above the upper band would imply strong continuation potential, while rejection may trigger a retest of the 20-day moving average (mid-band, ~$337). Band expansion coinciding with the rally validates the breakout’s technical significance.
Volume-Price Relationship
Rally days (2025-10-01 to 2025-10-03) recorded significantly higher volume (~2.1M to 2.6M shares) compared to preceding consolidation periods, confirming buyer conviction. The absence of elevated volume on pullbacks reinforces the dominance of accumulation. Recent volume profile strongly supports the sustainability of the uptrend, though climactic volume into resistance may signal short-term distribution.
Relative Strength Index (RSI)
Using the formula RSI = [Average Gain / (Average Gain + Average Loss)] 100, the 14-day RSI approaches overbought territory near 68. While not yet exceeding the 70 threshold, this proximity suggests potential near-term consolidation is increasingly likely to relieve building upside pressure. However, it remains within a bullish range, signifying momentum favors buyers absent a sharp reversal.
Fibonacci Retracement
Applying the retracement tool from the significant trough on 2025-07-18 ($277.09) to the peak on 2025-10-02 ($341.39) establishes key levels. The 61.8% retracement near $319 served as pivotal support during the September consolidation. Current price action approaches the 100% extension level near $357. Confluence exists between this Fibonacci extension, the recent intraday high ($357), and psychological resistance at $360, marking a critical zone for trend continuation or potential pause.
Confluence and Divergence Summary
Confluence occurs between Fibonacci extension ($357), candlestick resistance ($357), and the psychological $360 level. Moving averages, MACD, volume expansion, and RSI (though elevated) collectively align bullishly. The primary divergence lies within KDJ indicators flashing overbought signals against new price highs, which may precede short-term consolidation but doesn’t yet contradict the broader uptrend supported by other technical pillars. Traders should monitor the $357-$360 resistance band for breakout confirmation or rejection signals in the near term.