Elevance Health Rises 1.60% Over Three Sessions As Technicals Signal Bullish Momentum

Elevance Health (ELV) gained 0.34% in the latest session, marking its third consecutive day of advances with a cumulative 1.60% rise over this period. This upward movement reflects a short-term bullish sentiment within a broader technical context, which we will analyze using the required framework.
Candlestick Theory
Recent price action shows three successive bullish candles, indicating sustained buying pressure. The pattern formed over the last three sessions features progressively higher lows (290.47, 291.57, 289.72) and higher highs (296.92, 298.91, 293.40), establishing near-term support at 289–290 and resistance at 298–297. The long upper wick on August 13 (high: 298.91, close: 294.43) signals rejection at the 299 psychological barrier, reinforcing it as a key resistance. A confirmed close above 299 would suggest bullish continuation, while failure may test the 290 support.
Moving Average Theory
The 50-day moving average (approximately 302–305) looms overhead, capping recent rallies, while the 100-day (near 350) and 200-day (around 380) averages slope downward—confirming a longer-term bearish trend. The current price (295.43) remains below all three major averages, indicating persistent selling pressure. However, the convergence of the 50-day MA with the 38.2% Fibonacci level (discussed later) around 300–302 creates a critical resistance zone. A sustained break above this area may signal a trend reversal.
MACD & KDJ Indicators
The MACD histogram shows a nascent positive crossover, aligning with the recent rebound from the 274.66 low. This suggests building bullish momentum but requires confirmation through a decisive move above the signal line. Concurrently, the KDJ oscillator has exited oversold territory (K and D lines crossing above 20) and now approaches 50, supporting near-term upside potential. The absence of bearish divergence between price and these oscillators strengthens the recovery thesis, though momentum remains tentative below key MAs.
Bollinger Bands
Bollinger Bands contracted sharply during the late-July selloff (from 344.55 to 274.66) and have since widened, reflecting elevated volatility. The current price trades near the upper band (297–300), typically a resistance zone in downtrends. A sustained breakout above this band could signal an acceleration of the recovery. Conversely, contraction toward the midline (approximately 285) would indicate consolidation. The band width’s expansion supports volatility-driven directional moves.
Volume-Price Relationship
Volume surged during the mid-July decline (peaking at 8.39M shares on July 18) and again during the early-August rebound (2.41M on August 8), validating the momentum in both directions. Recent gains occurred on moderate volume (1.52M–2.47M), slightly below the three-month average. This divergence raises sustainability concerns; a breakout above 299 requires volume expansion to confirm conviction. The volume-weighted average price (VWAP) near 290 provides secondary support.
Relative Strength Index (RSI)
The 14-day RSI has rebounded from oversold (27.6 on August 1) to neutral (54.2 currently), reflecting improving momentum without immediate overbought risks. This aligns with the bullish KDJ reading and suggests room for upside before reaching the 70 threshold. The absence of bearish RSI divergence reinforces the recovery but warrants caution, as readings below 50 have preceded reversals during the year-long downtrend.
Fibonacci Retracement
Applying Fibonacci levels to the July 16 high (344.55) and August 1 low (274.66) reveals key retracement zones: 23.6% (291.15), 38.2% (301.36), and 50% (309.60). The price recently reclaimed the 23.6% level (291.15), now acting as support. The 38.2% level (301.36) converges tightly with the 50-day MA and July 24 swing high (302.45), creating a high-probability resistance cluster near 301–302. A decisive close above this zone could catalyze momentum toward 310.
Confluence and Divergence
Confluence is notable at 301–302, where the 38.2% Fibonacci level, 50-day MA, and July swing high align, making this a make-or-break resistance. Success here could trigger a rally toward 310–315. Conversely, failure may retest 290 support. Divergences are minimal, with price and oscillators (RSI, KDJ, MACD) moving in harmony. The only concern is volume, which hasn’t robustly confirmed the latest gains. Overall, short-term momentum favors upside, but the 301–302 resistance and volume caution necessitate vigilance.