Ares Management Rises 3.11% On Bullish Engulfing Pattern And Golden Cross Signal

Candlestick Theory
The recent candlestick formation for Ares Management reveals compelling price action dynamics. A bullish reversal pattern emerged over the past three sessions: a down candle (-3.24% on July 15) with a close near its low at 174.49 was followed by a robust up candle (+3.11% on July 16) that closed near its high at 179.92, effectively engulfing the prior candle’s body. This bullish engulfing pattern suggests a rejection of lower prices near the 174.36–174.74 support zone. Immediate resistance resides at the recent swing high of 181.55 (July 14), while the July 15 low (174.36) now serves as a critical short-term support level. A breach above 181.55 would expose the March 6 peak of 194.27, whereas failure to hold 174.36 may signal a retest of the 165.76 support established in late June.
Moving Average Theory
Moving averages underscore a robust uptrend for Ares Management. The 50-day moving average (approximately 175.50) recently crossed above the 200-day MA (near 168.80), confirming a golden cross and reinforcing long-term bullish sentiment. Current price (179.92) remains elevated above all three key averages, with the ascending sequence of the 50-day > 100-day (circa 172.30) > 200-day MA validating sustained upward momentum. This alignment signals strong institutional support and suggests minor pullbacks may attract accumulation above the 50-day MA, though a decisive break below the 200-day MA would indicate trend deterioration.
MACD & KDJ Indicators
MACD metrics exhibit emerging bullish momentum, with the MACD line (short-term EMA) now positioned above its signal line and the histogram ascending toward the zero line following a recent bullish crossover. This suggests recovering buying pressure. Conversely, the KDJ indicator enters overbought territory, with the K-value at approximately 85 and D-value near 82—above the typical 80 threshold. While MACD supports upside continuation, KDJ’s overbought condition implies near-term consolidation risk. A bearish KDJ divergence would develop if prices make new highs without corresponding strength in the K/D lines, warranting vigilance.
Bollinger Bands
Volatility expansion is evident through Bollinger Bands, with the July 16 range expansion (174.74–180.02) pushing prices toward the upper band. The bandwidth had contracted in early July, suggesting a coiled momentum release that materialized with the 3.11% advance. Prices now hover near the upper band, indicating short-term overextension. Mean reversion toward the middle band (20-period SMA at ~176.50) appears probable, but a sustained close above the upper band would signal breakout validation and target 184.00.
Volume-Price Relationship
Volume dynamics validate the recent bullish reversal. The July 16 surge of 3.11% occurred alongside a significant 60% volume increase (1.75M shares) from the prior session, confirming buyer conviction. This followed a relatively low-volume decline on July 15, suggesting lackluster selling pressure. Notable accumulation was observed during the June 26–July 2 recovery, where volume spikes coincided with a 2.3% upswing. Sustained advances on expanding volume would reinforce bullish sentiment, but deteriorating volume during rallies would question trend durability.
Relative Strength Index (RSI)
The 14-day RSI computes to 66, situating it in neutral territory and distancing it from overbought (>70) conditions. Current positioning reflects recovering momentum after the index rebounded from a mid-June dip near 50. RSI’s gradual ascent aligns with price gains, showing no divergence. While oversold (<30) signals are absent, traders should note that a rapid push above 70 may precede profit-taking. Given its current trajectory, RSI supports additional upside barring accelerated buying velocity.
Fibonacci Retracement
Applying Fibonacci retracement to the primary swing low at 165.76 (June 20) and high at 181.55 (July 14) yields key levels. The July 15 dip to 174.36 aligned closely with the 38.2% retracement (175.52), which now serves as a confluence support zone with the July 16 low. Bullish reversal near this level reinforces its significance. Resistance appears at the 23.6% retracement (177.82), though the July 16 close above this threshold hints at momentum resumption targeting the 0% level (181.55). A fall below 175.52 would shift focus to the 50% retracement at 173.65.