Arista Networks Stock Jumps 5.26% to $94.50 on Heavy Volume as Technicals Signal Bullish Momentum

Arista Networks (ANET) concluded the latest session with a 5.26% gain, extending its rally to three consecutive days and achieving a 9.41% cumulative advance during this period. The stock closed at $94.50, reflecting robust upward momentum driven by substantial volume of 12.1 million shares.
Candlestick Theory
Recent candlestick patterns reveal a pronounced bullish reversal. The formation of three consecutive white candles with progressively higher closes—especially the June 3 session, which opened near $90.02 and closed near its high of $94.91—signals strong accumulation. This follows a long bearish candle on May 29 that tested support at $86.37. This level now serves as critical short-term support, while resistance is established near the June 3 high of $94.91. A decisive close above this resistance could trigger further upside targeting the psychological $100 level.
Moving Average Theory
The moving average configuration underscores a bullish trend. The 50-day MA (approx. $90) has consistently acted as dynamic support during pullbacks, as seen in the late-May rebound from $86.37. The 100-day MA (approx. $88) and 200-day MA (approx. $85) maintain upward slopes below the price, confirming a long-term uptrend. The price holding above all three MAs indicates robust structure, with the 50-day/200-day golden cross earlier in 2025 remaining valid. Short-term bullish momentum may face initial resistance near the $95–$97 range, where the price briefly consolidated in mid-May.
MACD & KDJ Indicators
The MACD histogram has turned positive following a bullish crossover, indicating accelerating upward momentum. This aligns with the KDJ oscillator, where the K-line (approx. 85) has crossed above the D-line in overbought territory (>80). While KDJ’s overbought reading suggests near-term exhaustion risk, MACD’s strengthening signal supports continuation potential. Divergence is absent, as both oscillators align with recent higher price highs.
Bollinger Bands
Bollinger Bands show volatility expansion after a contraction phase in late May, with the June 3 close touching the upper band ($94.90–95.00). This "tag" of the upper band signals strength but warrants caution for potential mean reversion. The band width expansion from late May’s squeeze supports trending conditions. A sustained break above the upper band could signal an extension toward $97–98, while a rejection may retest the 20-day midline (approx. $91.50).
Volume-Price Relationship
Volume analysis validates the bullish reversal. The three-day rally was accompanied by rising volume (9.4M → 12.1M shares), culminating in the highest single-day volume since mid-May. This distribution confirms institutional participation. Notably, the May 29 sell-off occurred on elevated volume (17.9M shares), highlighting $86 as high-conviction support. Current volume profiles suggest the rally is sustainable if turnover remains above 10M shares.
Relative Strength Index (RSI)
The 14-day RSI (approx. 65) approaches overbought territory (70) but remains below warning levels. Its trajectory aligns with the price breakout, showing no bearish divergence. In trending markets, RSI can remain elevated; thus, it merely suggests consolidation rather than reversal. Traders should monitor for RSI sustained above 70, which may indicate overheating.
Fibonacci Retracement
Applying Fibonacci to the major swing from April 30 low ($82.27) to May 14 high ($98.22), the 23.6% retracement at $96.00 coincides with resistance. However, the decisive bounce from the 38.2% level ($90.25) during late May’s pullback validates its support strength. The current rally has surpassed the 61.8% retracement at $92.80, opening a path toward the May 14 peak. Confluence exists between the $96–98 resistance zone (prior high and 0% retracement) and the psychological $100 level.
Confluence and Divergence Synthesis
Confluence is evident at $86 support (candlestick low, 50-day MA, and volume spike) and near-term targets at $96–98 (Fibonacci and prior price structure). The moving average stack and MACD/volume alignment support bullish momentum. No material divergences are observed, though KDJ and RSI readings warrant monitoring for overextension. Probabilistically, the breakout favors continuation if $94.50 converts to support, though profit-taking near $97 may induce consolidation before testing $100.