Aon Shares Jump 4.57% On Bullish Breakout With Heavy Volume

Aon shares surged 4.57% in the latest trading session, closing at 372.89 after trading between 368.51 and 381. This significant upside movement occurred on elevated volume of 2.25 million shares, breaking above recent consolidation ranges. The analysis below evaluates key technical dynamics using multiple methodologies.
Candlestick Theory
The 4.57% white candle on July 25 represents a decisive breakout candle, engulfing the previous four sessions' range. This bullish engulfing pattern emerged near the 350 support level – which held firm during tests in mid-July – confirming buyer conviction. Resistance now emerges near 381 (July 25 high), aligning with the June 2 peak of 376.16. Sustained closes above 376 would confirm bullish continuation.
Moving Average Theory
Aon currently trades above all key moving averages, with the 50-day (∼351) and 100-day (∼347) exhibiting bullish alignment above the 200-day (∼341). The price recently rebounded precisely from the 50-day MA during July pullbacks, reinforcing its significance as dynamic support. The ascending order of MAs suggests established intermediate-term uptrend reinforcement following the Q2 dip below the 200-day MA.
MACD & KDJ Indicators
MACD shows a bullish crossover emerging after hovering near the zero line during July's consolidation. Histogram bars are expanding positively after a period of contraction, suggesting rebuilding momentum. KDJ's %K (75) has crossed above %D (68) from oversold territory, though approaching overbought readings. This aligns with price breakout confirmation but warrants monitoring for potential overextension.
Bollinger Bands
The July consolidation phase triggered notable band contraction (squeeze) with bandwidth narrowing nearly 15% from June levels. The breakout above 368 pierced the upper band, reflecting strong directional conviction. This volatility expansion signals continuation potential, with the upper band now near 378 serving as immediate resistance. A sustained move outside the bands may precede mean reversion.
Volume-Price Relationship
The breakout was validated by volume surging 48% above the 20-day average, confirming buyer participation. Notable accumulation occurred during the late-June dip below 350, where volume spikes coincided with price stabilization – a classic absorption pattern. Distribution volume during April's 400-323 collapse exhibited climactic characteristics, making current volume-supported gains more structurally sound.
Relative Strength Index (RSI)
14-day RSI (64) has rebounded from neutral territory but remains below overbought thresholds. It exited oversold conditions precisely during July's 350 bounce. While current readings show room for further upside, the indicator would approach cautionary territory above 72, particularly if divergences emerge. Current momentum synchronization with price action suggests sustainable strength.
Fibonacci Retracement
Applying Fib levels to the April high (400.59) and April low (323.73) shows Aon has now surmounted the critical 61.8% retracement (371.23), closing above this level for the first time since the breakdown. The 78.6% level near 383 becomes the next upside target. Confluence exists here with Bollinger Band resistance and the psychological 380 barrier.
Confluence appears at the 368-372 zone, where Bollinger Band breakouts, Fibonacci confirmation, and volume-supported momentum converge. The primary divergence exists in short-term oscillators (KDJ approaching overbought, RSI neutral) lagging the decisive price breakout, though this may resolve through consolidation. Overall technical structure suggests bullish continuation toward 380-383 is probable, contingent on sustaining above 368 support. Should profit-taking emerge, the 361-365 zone (confluence of 50-day MA and June swing highs) should contain pullbacks.