TKO Group Holdings Plunges 6.12% Over Two Days Amid Heavy Selling Pressure

TKO Group Holdings Technical Analysis
TKO Group Holdings (TKO) declined 4.80% in the most recent session, extending losses to 6.12% over two days amid elevated volume. This bearish momentum warrants a multi-faceted technical assessment.
Candlestick Theory
Recent sessions display a bearish continuation pattern, with the latest candle closing near its low ($155.61) after breaking below the $163 support (August 5 low). The long upper wicks on August 4–5 indicate persistent selling pressure near $168. Key support now resides at the July swing low of $150.44, while resistance converges near $165.76 (August 4 high) and $168. A close below $155 may accelerate downside momentum.
Moving Average Theory
The 50-day moving average (~$161) recently crossed below the 100-day average (~$165), signaling a bearish intermediate trend. The price now trades below all key EMAs (50, 100, 200-day), with the 200-day average (~$158) acting as final major support. This configuration suggests entrenched bearish momentum, though oversold conditions could prompt short-term consolidation near the 200-day level.
MACD & KDJ Indicators
MACD exhibits a bearish crossover below its signal line, with histogram bars expanding negatively—confirming downward momentum. KDJ shows the %K line (14.2) plunging below %D (28.6) into oversold territory (<20), though no divergence is evident yet. Both oscillators align with near-term bearishness but caution against impulsive downside as stochastic nears extreme lows.
Bollinger Bands
Price breached the lower Bollinger Band ($157) on August 6, signaling oversold conditions and potential mean-reversion bounce. However, the band expansion from July’s contraction phase implies volatility-driven downside continuation. A sustained close below the lower band may indicate capitulation, while a reversion toward the 20-day midline ($165) could define near-term resistance.
Volume-Price Relationship
The sell-off was validated by a volume surge to 2.66M shares (August 6)—the highest in three weeks—signifying strong bearish conviction. Conversely, preceding rallies saw diminishing volume (e.g., July 22–24), undermining bullish sustainability. This volume profile supports further downside unless accumulation emerges near $150–155.
Relative Strength Index (RSI)
Daily RSI (14-period) collapsed to 28.7, nearing oversold thresholds. While this may precede a technical bounce, the indicator’s steep descent cautions against premature reversal calls. Bearish momentum dominates until RSI reclaims 40–45, though divergence could develop if price stabilizes during RSI recovery.
Fibonacci Retracement
Applying Fib levels to the March 21 low ($139.62) and June 30 high ($182.60), the current price tests the 61.8% retracement ($152.94). A decisive break below this level—now reinforced by the 200-day MA—opens risk toward the 78.6% retracement ($145.75). Confluence with the psychologically significant $150 support (July 15 low) strengthens this zone as a potential reversal area if buyers emerge.
Confluence & Divergence Observations
Confluence exists at $150–$152, aligning the 200-day MA, Fibonacci 61.8% level, and major prior swing low. This zone may attract institutional buying. Notably, oversold signals (RSI, Bollinger Bands) lack bullish divergence, suggesting limited reversal impetus. The MACD/KDJ bearish momentum, volume confirmation, and MA alignment collectively endorse downside bias. Probable outcomes include consolidation near $150–155 or breakdown toward $145 if macro sentiment weakens. Exercise caution given the absence of reversal confirmation.