Blue Owl Stock Surges 7.28% on Technical Breakout With Bullish Indicators

Blue Owl (OWL) rose 7.28% in the most recent session, closing at $20.18 on substantial volume of 10.9 million shares. This bullish momentum breach of the $19.50–$20.00 resistance zone warrants comprehensive technical evaluation.
Candlestick Theory
The July 16 session formed a robust bullish marubozu candle, closing near its high of $20.19 after gapping above the prior close. This pattern signifies strong buying conviction. Key resistance now lies at the yearly high of $21.16 (April 2025), while support emerges at $18.80–$18.90, validated by multiple July reaction lows and the 100-day moving average.
Moving Average Theory
The 50-day MA ($19.05) crossed above the 100-day MA ($18.70) in late June, confirming a bullish intermediate trend. Current price trading above all three key MAs (50/100/200-day) signals sustained upside momentum. The ascending 200-day MA ($17.80) further underscores the long-term uptrend.
MACD & KDJ Indicators
MACD shows a bullish crossover with rising histogram bars, supported by the signal line holding above zero. KDJ’s %K (86) and %D (78) reflect overbought territory but maintain upward trajectory without divergence. While overextension risk exists, the synchronized bullish momentum from both oscillators favors continued upside.
Bollinger Bands
Price pierced the upper band ($19.85) during the 7.28% surge, indicating short-term overextension. However, the expansion from July’s tight bandwidth (2.8% vs. 4.5% current) signals breakout validation. The middle band (20-day MA at $19.25) now acts as primary support.
Volume-Price Relationship
The breakout occurred on 108% above-average volume, confirming institutional participation. Volume spikes consistently validated directional moves: 10.5M shares on April’s decline versus 16.3M shares during June’s recovery leg. This divergence signals accumulation and strengthens the bullish volume-price confirmation.
Relative Strength Index
RSI(14) at 72 edges into overbought territory but without bearish divergence. Historically, OWL sustained RSI >70 for 5–7 sessions during strong trends (e.g., March 2025 rally). Current momentum suggests room for further upside before mean reversion pressure materializes.
Fibonacci Retracement
Drawing from the May trough ($15.81) to April peak ($21.16), the 61.8% retracement ($19.28) was reclaimed as support in June. The recent breakout targets the 78.6% level at $20.60, with the 100% extension at $21.16 aligning with yearly highs. Confluence exists between Fibonacci targets and horizontal resistance.
Confluence & Divergence Observations
Bullish confluence appears at $19.25–$19.30 (50-day MA, Bollinger midline, and July swing highs). A notable bearish divergence emerged in April when price hit $21.16 as RSI peaked at 68, foreshadowing the subsequent 32% decline. No such divergence currently exists. Probable resistance at $20.60–$21.16 warrants monitoring for exhaustion signals amid overextended oscillators.