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The question on everyone's mind: Will ARES CAPITAL CORP breakout?

By Mill Chart

Last update: Mar 5, 2024

ARES CAPITAL CORP (NASDAQ:ARCC) was identified as a Technical Breakout Setup Pattern by our stockscreener. Such a pattern occurs when we see a pause in a strong uptrend: after a strong rise the stock is consolidating a bit and at some point the trend may be continued. Whether this actually happens can not be predicted of course, but it may be a good idea to keep and eye on NASDAQ:ARCC.

ARCC Daily chart on 2024-03-05

What is the technical picture of NASDAQ:ARCC telling us.

ChartMill assigns a Technical Rating to every stock. This score, ranging from 0 to 10, is updated daily and is determined by evaluating multiple technical indicators and properties.

We assign a technical rating of 7 out of 10 to ARCC. 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 compared to the yearly performance of all other stocks, ARCC outperforms 58% of them, which is more or less in line with the market.
  • ARCC is part of the Capital Markets industry. There are 209 other stocks in this industry, ARCC did better than 60% of them.
  • In the last month ARCC has a been trading in a tight range between 19.78 and 20.37.

For an up to date full technical analysis you can check the technical report of ARCC

Looking at the Setup

In addition to the Technical Rating, ChartMill provides a Setup Rating for each stock. This rating, ranging from 0 to 10, assesses the extent of consolidation in the stock based on multiple short-term technical indicators. Currently, NASDAQ:ARCC has a 10 as its setup rating:

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 20.45. Right above this resistance zone may be a good entry point. There is a support zone below the current price at 20.28, 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. Another positive sign is the recent Pocket Pivot signal.

How can NASDAQ:ARCC be traded?

For a potential trade one would typically wait until the stock breaks out of the consolidation zone to enter the stock and it could be sold again for a loss when it would fall back below the zone.

Please note that this article should not be construed as trading advice. The information provided is solely based on automated technical analysis and serves to highlight technical observations. It is important to conduct your own analysis and make trading decisions based on your own judgment and responsibility.

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

Disclaimer

This is not investing advice! The article highlights some of the observations at the time of writing, but you should always make your own analysis and invest based on your own insights.

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ARES CAPITAL CORP

NASDAQ:ARCC (5/24/2024, 7:14:24 PM)

After market: 21.46 +0.11 (+0.52%)

21.35

+0.15 (+0.71%)

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