Blue Owl Stock Extends Slide With 6.3% Three-Day Drop As Technicals Worsen

Blue Owl (OWL) concluded its most recent session at $19.04, marking a 3.15% decline and extending its losing streak to three days, resulting in a cumulative 6.30% drop. This persistent downward momentum warrants a multifaceted technical assessment.
Candlestick Theory
The recent price action forms three consecutive bearish candles, each closing near session lows ($19.04, $19.66, $20.04). The August 12th high of $20.58 and the July 17th peak of $21.08 stand as clear resistance zones. Conversely, the $19.00 level – tested multiple times in early August and late June – emerges as immediate psychological support. A breach below $19.00 could target the June pivot near $18.50.
Moving Average Theory
The 50-day MA (approx. $20.56), 100-day MA (~$20.20), and 200-day MA (~$19.80) align in a bearish sequence above the current price ($19.04). This configuration confirms a sustained downtrend, with each MA acting as dynamic resistance. The failure to reclaim the 200-day MA after August 12th’s brief test signals underlying weakness, reinforcing the bearish bias.
MACD & KDJ Indicators
The MACD remains entrenched below its signal line, with a widening negative histogram reflecting accelerating bearish momentum. Concurrently, the KDJ oscillators (K: ~18, D: ~23, J: ~8) reside deep in oversold territory (<20). While the KDJ suggests potential for a technical rebound, the MACD’s bearish divergence and absence of a bullish crossover signal caution against premature reversal assumptions. This dichotomy highlights conflicting short-term signals.
Bollinger Bands
Price has recently broken below the lower Bollinger Band ($19.25 approximation), typically indicating oversold conditions. However, the bands show only moderate expansion compared to early July’s volatility surge, suggesting further downside pressure could emerge if volatility amplifies. A close back inside the lower band is needed to signal stabilization.
Volume-Price Relationship
Distribution is evident: the August 13th sell-off occurred on elevated volume (13.46M shares), confirming bearish conviction. While recent volumes have normalized, the absence of significant accumulation during minor rallies undermines recovery prospects. The consistent volume spikes on down days validate the prevailing negative sentiment.
Relative Strength Index (RSI)
The 14-day RSI (~37) hovers near oversold territory but avoids extreme levels (<30). This positioning suggests room for further downside before capitulation is likely, though the indicator's proximity to oversold levels warrants monitoring for potential exhaustion signals in the near term. Its neutrality underscores persistent downward momentum without immediate reversal signs.
Fibonacci Retracement
Drawing from the June 23rd trough ($18.57) to the July 17th peak ($21.08), key retracement levels materialize. The price has breached the 50% retracement ($19.82) and 61.8% level ($19.26), finding fleeting support at the 78.6% retracement ($18.90) on August 15th. A decisive breakdown below $18.90 may expose the June low. Recovery above the 61.8% level ($19.26) is critical for any bullish reappraisal.
Confluence Points and Divergences
Confluence appears at $19.00–$18.90, merging psychological support, the August 7th low, and the Fibonacci 78.6% level. A violation here would align with bearish MA stacking and MACD momentum. Conversely, the oversold KDJ against sustained price weakness creates a notable divergence, suggesting the potential for a tactical rebound – though unsupported by volume or MACD confirmation. The overall technical structure favors bearish continuation, but proximity to multi-level support ($19.00-$18.90) coupled with deeply oversold oscillators implies downside may become increasingly contested near-term. Probabilistically, the burden of proof remains on bulls to demonstrate strength above key resistance near $19.80 (200-day MA and Fib 61.8%).