Is ARES CAPITAL CORP Ready to Break Out of Its Range?

Our stock screener has detected a potential breakout setup on ARES CAPITAL CORP (NASDAQ:ARCC). This breakout pattern is observed when a stock consolidates following a strong upward movement. It's important to note that this pattern is based on technical analysis, and the actual breakout outcome is uncertain. However, it might be worth keeping an eye on NASDAQ:ARCC.

Technical analysis of NASDAQ:ARCC

ChartMill employs a sophisticated system to assign a Technical Rating to every stock in its analysis. This rating, which ranges from 0 to 10, is determined by carefully assessing multiple technical indicators and properties.

Overall ARCC gets a technical rating of 7 out of 10. Although ARCC is only a medium performer in the overall market, the technical picture looks good in both the medium and short term time frames.

• Both the short term and long term trends are positive. This is a very positive sign.
• ARCC is currently trading near its 52 week high, which is a good sign. The S&P500 Index however is also trading near new highs, which makes the performance in line with the market.
• When comparing the performance of all stocks over the past year, ARCC turns out to be only a medium performer in the overall market: it outperformed 48% of all stocks.
• ARCC is part of the Capital Markets industry. There are 206 other stocks in this industry, ARCC did better than 51% of them.
• In the last month ARCC has a been trading in a tight range between 19.50 and 20.21.

Check the latest full technical report of ARCC for a complete technical analysis.

Looking at the Setup

ChartMill incorporates a Setup Rating in its analysis, which measures the extent of consolidation in a stock over recent days and weeks. This rating, ranging from 0 to 10, is updated daily and takes into account multiple short-term technical indicators. The current setup rating for NASDAQ:ARCC is 9:

ARCC has an excellent technical rating and also presents a decent setup pattern. Prices have been consolidating lately and the volatility has been reduced. There is a resistance zone just above the current price starting at 20.08. Right above this resistance zone may be a good entry point. There is a support zone below the current price at 20.02, a Stop Loss order could be placed below this zone. We notice that large players showed an interest for ARCC in the last couple of days, which is a good sign.

Trading setups like NASDAQ:ARCC

A breakout opportunity may arise when the stock surpasses the current consolidation zone and reaches new highs. Traders often wait for this breakout before considering buying the stock. To manage risk, a stop loss order could be placed below the consolidation zone to limit potential losses.

Important Note: The content of this article is not intended as trading advice. It is essential to perform your own analysis and exercise caution when making trading decisions. The article presents technical observations generated by automated analysis but does not guarantee any trading outcomes. Always trade responsibly and make independent judgments.

Our Breakout screener lists more breakout setups and is updated daily.

Keep in mind

Important Note: The content of this article is not intended as trading advice. It is essential to perform your own analysis and exercise caution when making trading decisions. The article presents observations created by automated analysis but does not guarantee any trading or investment outcomes. Always trade responsibly and make independent judgments.