TKO Stock Extends Losses 1.12% as Technicals Signal Bearish Momentum Below Key $165 Resistance

TKO Group Holdings (TKO) declined 0.52% in the latest session, marking two consecutive days of losses with a cumulative 1.12% drop. This retreat follows a notable rally in late 2024 and early 2025, prompting a technical assessment of key patterns and indicators.
Candlestick Theory
Recent price action shows bearish continuation signals near the $163-164 resistance zone. The June 10th long-legged doji ($161.80-$165.30) revealed indecision after a rally, while subsequent lower highs and closes confirm selling pressure. Critical support emerges near $157-159, where multiple March and April lows converge with the 200-day moving average. Resistance is firmly established at $165.50-$167, aligning with the May swing highs and psychologically significant round number.
Moving Average Theory
The 50-day MA ($157.80) remains above the 100-day MA ($150.40), confirming the longer-term uptrend. However, with current price ($163.08) below the 20-day MA ($165.50) and testing the 50-day MA, near-term momentum has weakened. The 200-day MA ($143.20) provides major structural support. A death cross between 20-day and 50-day MAs appears imminent should current prices persist, potentially accelerating bearish momentum.
MACD & KDJ Indicators
The MACD histogram is negative for the fourth consecutive week (-1.25), with the signal line crossing below zero – a bearish confirmation. KDJ readings (K:38, D:42, J:30) indicate an emerging oversold condition but lack reversal confirmation. Divergence exists: while prices retraced 8% from May highs, KDJ’s lower lows outpace price declines, suggesting momentum weakness precedes price. This could signal further downside before stabilization.
Bollinger Bands
Bands contracted sharply in May (width: $7 to $4) ahead of the recent breakdown, indicating volatility compression. Price now trades below the 20-day moving average and tests the lower Bollinger Band ($161.50), typically signaling oversold territory. However, expanding bands on down days (June 9th, -1.57%) suggest bearish momentum continuation may precede any reversal attempt.
Volume-Price Relationship
Volume spikes accompanied major turning points: February highs ($179) saw climax volume (>2.3M shares), while the May sell-off ($172 to $158) occurred on above-average turnover. Recent declines (June 9-12) show diminishing volume relative to the May correction, suggesting limited conviction in the current pullback. Resistance tests near $165 have consistently failed on increased volume, validating that barrier.
Relative Strength Index (RSI)
The 14-day RSI (47.2) maintains neutrality after exiting oversold territory (<30) in late April. However, it recorded bearish divergence in May – RSI peaked at 68 while prices reached higher highs at $172-$179. The current RSI trajectory suggests moderate bearish momentum without extreme readings, reducing reliability as a standalone reversal indicator at present.
Fibonacci Retracement
Using the swing low of $100.76 (June 17, 2024) and high of $179.09 (February 13, 2025), key retracement levels emerge. The 38.2% level ($150.50) held decisively in March, while the 50% level ($139.90) aligns with the 200-day MA and stopped the April decline. Current prices hover near the 23.6% retracement ($161.50), which now serves as immediate resistance-turned-support. A breakdown below $157 would target the 38.2% zone at $150.50-$151.00.
Confluence materializes at $150-$152, where the 38.2% Fibonacci level, 100-day MA, and May reaction lows converge. Divergence appears between momentum oscillators (MACD bearish) and volume patterns (diminishing sell-off volume), suggesting near-term downside may be contained. Should $157 support fail, the Fibonacci-MA confluence at $150-$152 becomes a high-probability reversal zone.