Argenx Surges 11.93% in Nine-Day Rally as Technicals Signal Overbought Conditions

The recent trading session for argenx (ARGX) saw a notable 11.93% surge, extending its winning streak to nine consecutive days and cumulatively gaining 18.73% over this period. This analysis evaluates the technical landscape using multiple methodologies.
Candlestick Theory
Recent price action for argenx reveals a strong bullish run, with the current session forming a long white candle closing near the session high (665 low, 689.13 high, 670.33 close). This pattern underscores robust buying momentum. However, the extended upper wick suggests emerging resistance near 690, as sellers capped gains despite intraday strength. Key support resides at 600–610 (July’s consolidation zone), while 690 serves as immediate resistance. A close below 650 would indicate potential exhaustion after the parabolic rally.
Moving Average Theory
The 50-day, 100-day, and 200-day moving averages (MAs) exhibit a bullish alignment. The current price (670.33) trades above all three MAs, confirming an uptrend. The 50-day MA (~600) has recently crossed above both the 100-day (~580) and 200-day (~560), forming a "golden cross." This alignment typically reinforces bullish momentum. Nevertheless, the significant gap between price and the 50-day MA highlights overextension, increasing susceptibility to a mean-reversion pullback toward 620–630.
MACD & KDJ Indicators
The MACD histogram remains positive but shows narrowing momentum, suggesting bullish exhaustion may be developing. Meanwhile, the KDJ oscillator reflects severe overbought conditions, with the %K and %D lines sustaining above 80 for multiple sessions. While KDJ’s persistence in overbought territory can accompany strong trends, the current extreme reading aligns with the candlestick resistance at 690, raising reversal probability if bearish divergence emerges.
Bollinger Bands
Bollinger Bands have expanded markedly during the rally, reflecting heightened volatility. Price has consistently hugged the upper band, reinforcing the uptrend’s strength. However, the sharp expansion and the last session’s rejection from the upper band (∼690) hint at a potential consolidation phase. A reversion toward the 20-day moving average (mid-band, currently ∼620) would offer a healthy retest of dynamic support.
Volume-Price Relationship
The nine-day rally was validated by rising volume, peaking at 1.38 million shares on July 31—well above the 90-day average. This confirms institutional participation. However, the record-high volume accompanying the latest surge and long upper wick signals distribution (selling pressure) near 690. Sustained upward moves require ongoing volume support; failure to maintain elevated volume may trigger profit-taking.
Relative Strength Index (RSI)
The 14-day RSI has surged into overbought territory (above 80), far exceeding the standard 70 threshold. Historically, such extremes preceded short-term consolidations for argenx, as seen during the May peak. While RSI can remain overbought in strong trends, current levels warrant caution. A reversal below 70 could signal waning momentum, targeting RSI support near 50.
Fibonacci Retracement
Applying Fibonacci to the swing low (524.58 on September 26, 2024) and high (689.13 on July 31, 2025) reveals key levels: 23.6% (650), 38.2% (628), and 50% (607). These align with historical congestion zones—notably, the 50% level (607) converges with the 200-day MA and June’s consolidation, creating a high-probability support confluence. A pullback toward 628–650 would offer strategic entry points, provided volume diminishes near these thresholds.
Confluence Points and Divergences
Confluence at 625–630 (38.2% Fibonacci, 100-day MA, and mid-Bollinger Band) offers strong support, while 690 (candlestick resistance and upper Bollinger Band) caps upside. Divergence arises from the overbought KDJ and RSI readings conflicting with price highs, suggesting weakening momentum. The MACD’s flattening histogram reinforces this caution. Should price breach 690 with subdued volume, it may signal a bull trap; conversely, a volume-supported hold above 650 could extend the trend. Given the technical overextension, near-term consolidation appears probable, with key validation at 650 support.