Ares Management Rises 3.13% to $188.55 Amid Strong Technical Bullish Signals

Ares Management (ARES) concluded its most recent trading session with a 3.13% gain, closing at $188.55. This positive performance forms the latest data point in an extensive dataset spanning approximately one year, enabling a multi-faceted technical assessment.
Candlestick Theory
Recent price action reveals potential signals within the context of the overall trend. The session on August 1st printed a notable long-legged doji or hammer-like pattern near $173.7 after a significant decline, suggesting potential exhaustion of selling pressure and hinting at support around the $172-$174 zone. The subsequent bullish close above $188.55, recovering from intra-week weakness, indicates strong buying interest. Key resistance is now evident near the recent high of $189.36, while support has solidified in the $173.70-$174 region. The breakout above the consolidation range observed in late July reinforces the current bullish posture.
Moving Average Theory
The stock demonstrates a robust uptrend based on moving averages. The current price resides significantly above the calculated 50-day, 100-day, and 200-day Simple Moving Averages (approximating around $172, $165, and $155 respectively based on the dataset). This positioning, particularly the decisive move above the 50-day MA during the late July breakout, confirms a strong bullish bias. The sequence of the shorter-term 50-day MA above the longer-term 100-day and 200-day MAs creates a bullish alignment, reinforcing the underlying long-term upward trajectory and highlighting the $170-$175 zone as a major support confluence.
MACD & KDJ Indicators
The MACD (Moving Average Convergence Divergence) likely generated a bullish crossover in late July/early August, coinciding with the price breakout above $182-$183. The subsequent price ascent suggests the MACD histogram is in positive territory, confirming upward momentum. Simultaneously, the KDJ indicator (particularly the %K and %D lines) appears to have entered overbought territory (>80) following the recent surge. While this signals strong momentum, it suggests caution for potential near-term consolidation or pullback. Both oscillators currently support the established bullish trend but warn of extended short-term conditions.
Bollinger Bands
A significant Bollinger Band contraction occurred throughout July, indicative of low volatility and preceding a decisive move. The sharp price rise in early August caused a pronounced band expansion, confirming the volatility breakout. Currently, ARES trades near the upper Bollinger Band ($188+), reflecting strong upward momentum and potentially overextended conditions relative to its recent volatility profile. While the breakout from the mid-band in late July was a key bullish signal, proximity to the upper band heightens the risk of a temporary retreat or consolidation towards the $180-$182 support zone (mid-band area).
Volume-Price Relationship
Recent price movements exhibit constructive volume dynamics. The breakout above the $182-$183 resistance area on August 1st and the sustained gain to $188.55 on August 4th were accompanied by elevated trading volumes (2.19M and 1.38M shares respectively), validating bullish conviction behind those moves. This increased volume on rising prices reinforces the sustainability of the uptrend. Conversely, down days in late July generally saw lower volume, suggesting a lack of strong selling conviction during the minor pullback.
Relative Strength Index (RSI)
Calculating the 14-day RSI places the indicator roughly in the 65-70 range based on recent gains. This approaches overbought territory (>70), suggesting the rally may be maturing in the short term. It signifies strong momentum but also hints at the possibility of a pullback or consolidation to alleviate overbought pressure. Crucially, the RSI successfully held above the key 30 oversold level during the May and June pullbacks ($158-$160 lows), demonstrating resilience and validating underlying support.
Fibonacci Retracement
Applying Fibonacci retracement levels to the significant decline from the March peak near $200 to the May low near $158 reveals key potential support/resistance thresholds. The 50% retracement level near $179 held effectively during July's consolidation. More importantly, the price recently surpassed the 61.8% retracement level near $182. This break signals strong bullish sentiment and suggests potential continuation towards the 78.6% level near $190 and ultimately the prior peak. The $182 level now transitions into a critical support zone.
Confluence and Conclusion
A strong confluence of bullish signals exists. The decisive price breakout above the $182 resistance (validated by high volume), the bullish moving average alignment, the MACD and KDJ momentum upticks, and the break above the key 61.8% Fibonacci level collectively indicate an established and robust uptrend for ARES. Technical factors suggest primary support now resides between $174-$182 (previous resistance, Fibonacci level, moving averages), with resistance near $189-$190 (recent high, Fibonacci 78.6%).
However, cautionary notes arise from the overbought KDJ reading and the RSI nearing 70, coupled with price pushing against the upper Bollinger Band. This confluence near $188-$189 may induce near-term profit-taking pressure or consolidation before a potential test of higher resistance levels. The overall technical posture remains bullish, supported by volume and trend indicators, though prudent risk management dictates monitoring overextended shorter-term signals. Probable near-term trading ranges involve testing $189-$190 resistance or consolidating within $182-$188.