AstraZeneca Stock Surges 5% On Bullish Technicals As Golden Cross Confirms Uptrend

Candlestick Theory
Astrazeneca's recent price action exhibits a Three White Soldiers pattern—consecutive bullish candles with higher highs and higher lows—following a Doji on September 25th, indicating a reversal from prior consolidation. Resistance is evident near $77.50 (September 22nd close), while support holds firm at $73.33 (September 26th low). The latest session’s long green candle closing near its high ($76.72) confirms bullish conviction, though proximity to resistance warrants vigilance for potential reversals.
Moving Average Theory
The stock trades above all key moving averages (50-day: $74.20, 100-day: $72.80, 200-day: $71.40), confirming a robust uptrend. The 50-day MA crossed above the 100-day MA in mid-August, generating a bullish "Golden Cross." Current price strength above these tiers suggests sustained upward momentum. However, any pullback toward the 50-day MA could offer strategic entry points if volume supports the bounce.
MACD & KDJ Indicators
MACD (12,26,9) shows a bullish crossover emerging on September 30th, with the histogram turning positive, signaling strengthening momentum. The KDJ indicator's J-line (87) is overbought but not yet diverging, supporting near-term bullishness. While MACD alignment reinforces trend continuation, KDJ’s overbought status cautions against chasing rallies. A KDJ bearish crossover would flag profit-taking signals.
Bollinger Bands
Volatility expanded sharply during the September 30th breakout, propelling the price to the upper band ($77.00). The prior contraction (September 23rd–25th) foreshadowed this directional move. Current proximity to the upper band suggests short-term exhaustion. A retreat toward the middle band ($74.50) or consolidation within the bands appears probable before further upside.
Volume-Price Relationship
The 3-day rally saw escalating volume (4.35M → 6.12M → 7.68M shares), validating bullish momentum. Notable accumulation occurred near $74–$75 support in late September. However, volume on the September 30th surge was 24% below the 3-month average, introducing skepticism about sustainability. A failure to accompany future gains with above-average volume may indicate weakening participation.
Relative Strength Index (RSI)
RSI(14) climbed to 68 on September 30th, nearing overbought territory (>70) but retaining upward momentum. It rebounded from oversold levels (<30) in late August, aligning with the price recovery. While not yet extreme, RSI’s approach to 70 may trigger consolidation. Traders should note that RSI can remain overbought in strong trends, requiring confirmation from other indicators.
Fibonacci Retracement
Using the July peak ($79.56) and September 26th trough ($73.33), key levels emerge: 38.2% retracement at $75.70 (recently surpassed) and 50% at $76.45 (now acting as support). The 61.8% level ($77.25) aligns with September’s resistance zone ($77.50). Confluence between Fibonacci resistance and prior price peaks strengthens the significance of the $77.25–$77.50 area.
Confluence & Divergence Insights
Confluence:
- Bullish consensus exists between moving averages (golden cross), MACD crossover, and volume-backed candlestick patterns.
- Fibonacci 50% level ($76.45) now coincides with intraday support, reinforcing its technical relevance.
Divergence:
- RSI and KDJ overbought readings contrast with unconfirmed Bollinger Band breakout, suggesting near-term exhaustion risk.
- Declining volume during the September 30th surge diverges from ideal accumulation patterns.
Conclusion
Astrazeneca exhibits strong bullish structure underpinned by moving averages and momentum indicators. While short-term consolidation is likely after the sharp rally—especially near $77.25–$77.50 resistance—the broader trend favors upside. Traders should monitor volume for confirmation of breakouts and watch for bearish divergences in RSI/MACD if prices stall. A sustained close above $77.50 would open a path toward the 2025 high of $79.56.