AstraZeneca Stock Jumps 3.53% Extending Two-Day Rally To 6.63%

Astrazeneca (AZN) advanced 3.53% in the most recent session, marking its second consecutive gain with a cumulative 6.63% rally over two days. This analysis examines key technical indicators to assess the stock's trajectory.
Candlestick Theory
The current price action shows a bullish continuation pattern following a Hammer formation on July 28th (low of $71.49, close near $71.83), which signaled rejection of lower prices. The subsequent back-to-back white candles with higher highs/lows indicate strengthening momentum. Immediate resistance resides near the July 30th high of $76.73, while support is established at $73.98 (July 29th low) and reinforced by the July 28th swing low of $71.49. A key psychological resistance level exists near $77.50, last tested in April.
Moving Average Theory
The 50-day moving average crossed bullishly above the 100-day MA in late June, confirming a medium-term uptrend. Currently trading above both averages, the price maintains strong support near the 50-day MA ($72.40). The 100-day MA ($70.80) provides a secondary buffer. While the absence of a 200-day MA (due to limited data) restricts long-term validation, the shorter MAs demonstrate orderly structure with the 50-day acting as dynamic support.
MACD & KDJ Indicators
MACD histogram bars have accelerated above the signal line since July 22nd, reflecting strengthening bullish momentum. KDJ lines exited oversold territory (KDJ<20) on July 23rd and now approach overbought territory (K:68, D:62, J:80), though no bearish divergence is evident. This confluence suggests upside momentum may persist near-term, though stretched KDJ readings warrant monitoring for potential consolidation.
Bollinger Bands
Bollinger Band width expanded 18% during the recent breakout, signaling increased volatility and confirming directional conviction. Price currently trades near the upper band ($77.20), which may act as immediate resistance. The absence of "squeeze" conditions preceding the breakout increases confidence in the move's sustainability. Middle band support rises to $72.60.
Volume-Price Relationship
Volume surged 42% during the July 29th breakout candle ($1.067B vs. 50-day avg ~$350M), providing robust confirmation. The subsequent session maintained elevated volume while advancing, diminishing the likelihood of exhaustion. Cumulative volume patterns show consistent accumulation since the April lows, reinforcing the uptrend's foundation.
Relative Strength Index (RSI)
14-day RSI reads 67, approaching overbought territory but not yet exceeding the 70 threshold that might signal excessive optimism. Notably, RSI has formed higher lows since late June while price tested similar levels, creating a positive divergence that foreshadowed the current breakout. This momentum signature supports continuation potential, though overbought conditions would increase near-term caution.
Fibonacci Retracement
Using the major swing from the August 2024 high ($87.62) to November 2024 low ($63.23), the 50% retracement level ($75.43) was decisively breached with this week's rally. The 61.8% level ($78.30) now becomes the next upside target. This Fibonacci resistance converges with the swing high from April 2025 ($77.50-$78.30), creating a significant technical barrier. Any pullback would find support at the 38.2% level ($72.55), aligning with the moving average cluster.
Confluence exists between Fibonacci resistance ($78.30), Bollinger Band resistance ($77.20), and the psychological $78 level, suggesting a potential consolidation zone overhead. Conversely, multiple support indicators converge near $72.50-$73.00 (50% Fibonacci, 50-day MA, and volume point of control). The only divergence noted is between extended KDJ readings and price momentum, which may foreshadow near-term consolidation but doesn't yet indicate reversal. Overall technical structure appears bullish, with sustainability contingent on holding above $73.98 support.