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Promising Signs: ARES CAPITAL CORP Setting the Stage for a Breakout.

By Mill Chart

Last update: Apr 4, 2024

A possible breakout setup was detected on ARES CAPITAL CORP (NASDAQ:ARCC) by our stockscreener. A breakout pattern is formed when a stock consolidates after a strong rise up. We note that this pattern is detected purely based on technical analysis and whether the breakout actually materializes remains to be seen. It could be interesting to keep an eye on NASDAQ:ARCC.

ARCC Daily chart on 2024-04-04

Deciphering the Technical Picture of NASDAQ:ARCC

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 in the upper part of its 52 week range. The S&P500 Index however is currently trading near a new high, so ARCC is lagging the market slightly.
  • When compared to the yearly performance of all other stocks, ARCC outperforms 56% 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 62% of them.
  • In the last month ARCC has a been trading in a tight range between 19.75 and 20.86.

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

Why is NASDAQ:ARCC a setup?

Alongside the Technical Rating, ChartMill assigns a Setup Rating to evaluate the consolidation level of a stock. This rating, ranging from 0 to 10, is updated daily and considers various short-term technical indicators. The current setup rating for NASDAQ:ARCC is 9:

Besides having an excellent technical rating, ARCC also presents a decent setup pattern. Prices have been consolidating lately and the volatility has been reduced. There is a support zone below the current price at 20.33, 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. Very recently a Pocket Pivot signal was observed. This is another positive sign.

Trading setups like NASDAQ:ARCC

To potentially initiate a trade, it is common practice to wait for the stock to break out of the consolidation zone. This breakout signifies a potential upward movement, and traders may enter the stock at that point. Conversely, if the stock falls back below the consolidation zone, it may be sold at a loss.

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.

Disclaimer

This article should in no way be interpreted as advice in any way. The article is based on the observed metrics at the time of writing, but you should always make your own analysis and trade or invest at your own responsibility.

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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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