Blackstone Inc (NYSE:BX) shares are plunging Thursday after Blue Owl Capital Inc (NYSE:OWL) moved to halt quarterly redemptions at one of its private‑credit funds.
- Blackstone stock is feeling bearish pressure. What’s behind BX decline?
Why The Freeze Is Pressuring Blackstone
Blue Owl’s decision to freeze redemptions at a private‑credit fund aimed at retail investors has rattled shares of major alternative managers, including Blackstone, Ares Management and Apollo Global Management — all of which have significant exposure to private credit, according to Barron’s.
Private‑credit funds have grown rapidly in recent years, with Blackstone Private Credit now the largest non‑traded fund in the category at roughly $47 billion in net assets. Blue Owl Credit Income follows at $19 billion, and Apollo Debt Solutions at $14 billion, according to Raymond James data.
Blue Owl said late Wednesday that it sold $1.4 billion in assets from three of its private‑credit funds to institutional investors at fair value — 99.7% of par.
Technical Picture Shows Deepening Weakness
Blackstone is currently positioned in a bearish trend, trading significantly below its key moving averages. This setup indicates weakness, with Blackstone’s stock trading 10.1% below its 20-day SMA, 16.1% below its 50-day SMA and 19.4% below its 200-day SMA.
The RSI is currently at 37.47, which is considered neutral but leans towards oversold territory, suggesting that while there may be some selling pressure, a potential rebound could be on the horizon if buyers step in.
MACD is below its signal line, indicating bearish pressure on Blackstone’s stock. This situation suggests that the momentum is not in favor of a quick recovery, and traders should be cautious.
Key support is at $118.50, and if this level is breached, it could signal further downside potential. Conversely, resistance is at $149.00, and a break above this level could indicate a shift in momentum.
Over the past 12 months, Blackstone’s stock has declined by 25.06%, reflecting a challenging year for the company. This longer-term performance underscores the current bearish sentiment and the need for traders to remain vigilant.
BX Price Action: Blackstone shares were down 5.58% at $125.48 at the time of publication on Thursday, according to Benzinga Pro.
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