TKO Group Rebounds 4.94% as Technical Indicators Signal Strengthening Uptrend

Candlestick Theory
The recent price action of TKO Group Holdings displays notable candlestick patterns. Following a bearish Marubozu on August 6 (high: $167.39, close: $155.61), which signaled strong selling pressure, the stock rebounded with consecutive bullish candles on August 7–8. The August 8 session formed a small white candle closing at $163.29, suggesting consolidation after a 4.94% two-day rally. Key resistance is observed near $168–$170, a zone tested multiple times in July but consistently rejected (e.g., July 29 high: $170.98, close: $168.15). Support emerges around $152–$155, validated by the August 6 low of $154.05 and the sharp recovery thereafter. The recent bounce from $160.43 on August 8 reinforces this floor.
Moving Average Theory
Moving averages reflect shifting momentum across timeframes. The 50-day SMA (approximately $157.50) recently crossed above the 200-day SMA (~$152.80), confirming a bullish long-term bias. However, the 100-day SMA (~$160.20) acts as dynamic resistance, with price reclaiming it during the recent rebound. Shorter-term, the 20-day EMA ($161.30) provided support during the August 6–7 pullback. Current price trading above all three key averages ($163.29 vs. 50/100/200 SMAs) suggests a strengthening uptrend, though sustainability hinges on holding above the 100-day SMA.
MACD & KDJ Indicators
The MACD histogram shows improving momentum, transitioning from negative territory in early August to a nascent bullish crossover (signal line divergence narrowing). This aligns with the price rebound from $155.61. Meanwhile, the KDJ indicator exited oversold conditions (K: 25, D: 20, J: 35) on August 7, triggering a bullish crossover as J-line surged above K and D. However, both oscillators remain below overbought thresholds (KDJ: ~60; MACD: neutral), leaving room for further upside before exhaustion signals emerge.
Bollinger Bands
Bollinger Bands highlight volatile conditions. The August 6 sell-off pushed prices below the lower band ($157), signaling oversold extremes and foreshadowing the current rebound. Bandwidth expanded during this move, reflecting volatility spikes. Currently, price trades near the middle band (20-SMA: $163), with the upper band at $172. A sustained close above $163 could target the upper band, though contraction would suggest reduced momentum.
Volume-Price Relationship
Volume patterns validate recent price strength. The August 7 rally (3.30%) occurred on 1.91M shares—well above the 30-day average—confirming buyer conviction. Follow-through volume on August 8 (1.54M shares) remained robust despite smaller gains, supporting continuation. Conversely, the August 6 decline (-4.80%) saw elevated volume (2.66M shares), indicating capitulation before the rebound. This volume-price synergy reinforces the recovery’s credibility.
Relative Strength Index (RSI)
The 14-day RSI rebounded sharply from nearly oversold (31.5 on August 6) to 55.7, reflecting regained bullish momentum. Current RSI resides in neutral territory, eliminating immediate overbought risks. However, proximity to the 60–70 zone warrants monitoring for potential exhaustion near the $168–$170 resistance. Divergence was absent during the August low, as RSI’s higher low aligned with price’s higher low relative to the June swing bottom ($130.89).
Fibonacci Retracement
Applying Fibonacci retracement to the June–July rally (swing low: $130.89 on June 18; swing high: $182.60 on June 30) reveals key levels. The recent pullback to $154.05 (August 6) held precisely at the 61.8% retracement ($154.50), a critical support zone. This confluence with horizontal support validated the bounce. Upside targets include the 38.2% level ($162.80, now surpassed) and the 23.6% level ($170.90), which aligns with multi-test resistance. A break above $170.90 would signal trend resumption.
Confluence and Divergence Observations
Strong confluence exists around $154–$155, where Fibonacci 61.8% retracement, horizontal support, and Bollinger lower band converged to catalyze the rebound. Similarly, $170 resistance integrates the 23.6% Fibonacci level, July swing highs, and the upper Bollinger Band. No major divergences are evident; momentum oscillators and volume align with price recovery. However, caution is warranted near $170, where overbought RSI signals may coincide with technical resistance. The moving average golden cross (50 > 200 SMA) and MACD improvement suggest intermediate bullish bias, but sustainability requires volume-backed clearance of $170.