Astrazeneca Gains 3.45% as Bullish Technical Signals Fuel 5.97% Three-Day Rally

Astrazeneca (AZN) has experienced a 3.45% surge in the most recent trading session, marking its third consecutive day of gains with a cumulative 5.97% rise over three days. This immediate upward momentum sets the stage for a technical analysis across multiple frameworks to assess the stock’s potential trajectory.

Candlestick Theory

Recent price action for Astrazeneca reveals a bullish continuation pattern, with three consecutive higher closes forming a short-term uptrend. Key support levels can be identified at the 74.07–74.31 range (August 11–12) and the 73.55–73.6 level (August 8). Resistance is currently clustered around the 77.94–78.03 zone (August 13) and the prior high of 76.59–76.73 (July 30). A bullish engulfing pattern on the most recent session, where the candle closed near its high, suggests strong buying pressure. However, caution is warranted if the price fails to hold above 74.07, as this could trigger a retest of the 73.55 support zone.

Moving Average Theory

Short-term momentum is reinforced by the 50-day moving average (DMA), which is positioned above the 200-day DMA, indicating a bullish bias in the intermediate term. The 100-day DMA provides a critical reference point: if the current price of 77.94 remains above this threshold, the uptrend is likely to persist. Divergence between the 50-day and 200-day DMAs—currently narrowing—suggests a potential consolidation phase ahead, with the 200-day DMA acting as a dynamic support level.

MACD & KDJ Indicators

The MACD histogram shows positive divergence, with the line crossing above the signal line in recent sessions, confirming bullish momentum. The KDJ (stochastic oscillator) indicates overbought conditions, with the %K line approaching the 80 threshold and %D following closely. While this signals potential exhaustion in the short term, the lack of bearish divergence (i.e., price highs outpacing oscillator highs) suggests the uptrend may continue. A crossover of the K line below the D line could trigger a pullback, but this is more likely if the RSI (discussed later) confirms oversold conditions.

Bollinger Bands

Volatility has expanded in recent sessions, with the price trading near the upper Bollinger Band (78.03 on August 13), a classic overbought signal. The 20-day standard deviation is widening, indicating heightened market participation. A reversion to the mid-band (around 75.5–76) is probable unless the price breaks above the upper band, which would extend the bullish trend. The lower band (73.0–73.5) remains a key watchpoint for potential short-term reversals.

Volume-Price Relationship

Trading volume has surged in tandem with the recent rally, peaking at 9.8M shares on August 1 (a 1.18% up day) and remaining elevated at 5M+ shares in the past three sessions. This volume validates the strength of the upward move, reducing the likelihood of a false breakout. However, a sharp decline in volume during an extension of the uptrend could signal weakening conviction.

Relative Strength Index (RSI)

The 14-period RSI is currently in overbought territory (above 70), aligning with the KDJ’s overbought signal. While this traditionally warns of a near-term correction, the absence of bearish divergence (price highs vs. RSI highs) suggests the trend may persist. A drop below 50 would confirm a shift in momentum, but the recent backtest strategy (detailed below) leverages RSI over 70 as a sell trigger, highlighting a potential risk-reversal point.

Fibonacci Retracement

Key Fibonacci levels from the recent high of 78.03 to the low of 63.3 (October 16, 2024) include 38.2% (71.5), 50% (70.6), and 61.8% (69.8). The current price of 77.94 suggests a shallow retracement, with the 38.2% level (71.5) acting as a critical support. A breakdown below 71.5 would likely target the 50% and 61.8% levels, aligning with the Bollinger Band’s lower band.

Backtest Hypothesis

The described backtest strategy—purchasing Astrazeneca when RSI exceeds 70 and selling when it falls below 70—demonstrates a nuanced approach to momentum trading. Historical performance from 2022 to 2025 indicates a maximum drawdown of 25.56% and an average annual return of 3.86%, underscoring the strategy’s risk-mitigation effectiveness despite modest gains. This aligns with the current overbought RSI reading, suggesting a potential exit point for the strategy. However, the confluence of bullish MACD, strong volume, and Fibonacci support above 71.5 implies the uptrend may outperform the historical average, creating a divergence between the backtest’s mechanical rules and on-chain momentum. Traders might consider tightening stop-loss levels at 73.55 to balance risk with the prevailing technical bias.