Aflac Rises 3.43% To $102.31 As Bullish Momentum Builds

Aflac (AFL) recently demonstrated bullish momentum, rising 3.43% to $102.31 on August 6, 2025, marking a three-day winning streak with cumulative gains of 4.30%. This price action will be contextualized within the following technical assessment.
Candlestick Theory
Recent sessions reveal a bullish reversal pattern near the $96.95–$97.47 support zone (August 1–4 lows), where hammer-like candles formed. The consecutive white candles with higher closes over the past three days confirm buying interest. Resistance is observed at $103.54–$104.57 (July 28–29 highs), while support holds near $98.09 (August 1 close). A close above $104.57 would signal further upside potential.
Moving Average Theory
The 50-day SMA ($103.23) and 100-day SMA ($104.15) both hover above the current price, reflecting persistent intermediate-term resistance. However, the 200-day SMA ($105.58) is declining, indicating a secular downtrend. The recent rebound places AFL near the 50-day SMA; a sustained break above this level would suggest bullish momentum strengthening. Death crosses (50-day below 100-day) earlier this year established bearish confluence, which now requires monitoring for reversal signals.
MACD & KDJ Indicators
MACD registers a bullish crossover, with its histogram turning positive – signaling building upward momentum. KDJ oscillators show K-line (73) and D-line (65) rising steeply from oversold territory, while J-line (89) touches overbought thresholds. This implies short-term overheating but aligns with MACD’s bullish bias. Divergence emerges as KDJ’s overbought reading contrasts with price still trading below key SMAs, warranting caution despite bullish momentum signals.
Bollinger Bands
Volatility expanded as price breached the upper band ($104.78) on August 6 after a contraction phase in late July. This breakout, coupled with above-average volume, supports bullish continuation. The middle band ($99.85) now acts as dynamic support, with a sustained hold above this level reinforcing bullish near-term sentiment.
Volume-Price Relationship
Volume surged 20% during the three-day rally, confirming conviction behind the breakout. The August 6 session’s volume of 3.58M shares exceeded the 30-day average, validating the 3.43% gain. This contrasts with the high-volume decline on April 4 (-8.74%), where distribution occurred near $112–$114. Current accumulation patterns suggest stronger sustainability than prior counter-trend rallies.
Relative Strength Index (RSI)
The 14-day RSI (58.6) rebounds from oversold conditions but remains neutral, allowing room for further upside before reaching overbought (>70). Its divergence from the late July price lows (higher troughs in RSI during retests of $96.95) signals waning bearish momentum. While not yet overbought, its rapid ascent calls for near-term consolidation.
Fibonacci Retracement
Using the decline from $115.26 (October 4, 2024 peak) to $96.95 (August 1, 2025 trough), key retracement levels include $101.27 (23.6%), $103.16 (38.2%), and $105.10 (50%). Price has surpassed the 23.6% level, with the 38.2% threshold aligning with horizontal resistance. This confluence near $103 creates a critical technical juncture for trend continuation.
Confluence and Divergences
Confluence exists at $103.16–$103.54 (Fibonacci 38.2% + July high), where multiple resistance factors cluster. A decisive break above this zone could trigger short covering toward $105.10. However, divergence between KDJ’s overbought signal and RSI’s neutrality injects near-term uncertainty. Volume confirmation and MACD’s positive trajectory lean bullish, yet the overarching downtrend (as evidenced by moving averages) necessitates cautious interpretation of the rebound’s longevity. Watch for consolidation or pullback near $103 resistance before determining trend commitment.