A technical analysis of ARES CAPITAL CORP.

Our stock screener has flagged ARES CAPITAL CORP (NASDAQ:ARCC) as a potential breakout candidate. This occurs when the stock shows signs of consolidation after a notable upward trend. While we can't predict the actual breakout, it's worth monitoring NASDAQ:ARCC for potential movement.

Analyzing the Technical Aspects

Every day ChartMill assigns a Technical Rating to every stock. The score ranges from 0 to 10 and is determined by evaluating 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 61% of all stocks.
• ARCC is an average performer in the Capital Markets industry, it outperforms 57% of 212 stocks in the same industry.
• In the last month ARCC has a been trading in a tight range between 20.13 and 21.00.

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

How do we evaluate the setup for NASDAQ:ARCC?

Besides the Technical Rating, ChartMill assigns a Setup Rating to every stock to determine the degree of consolidation. This rating, ranging from 0 to 10, is updated daily and evaluates various short-term technical indicators. NASDAQ:ARCC currently holds a 9 as its setup rating, suggesting a particular level of consolidation in the stock.

ARCC has an excellent technical rating and also presents a decent setup pattern. Prices have been consolidating lately. There is a resistance zone just above the current price starting at 20.90. Right above this resistance zone may be a good entry point. There is a support zone below the current price at 20.73, a Stop Loss order could be placed below this zone. Another positive sign is the recent Pocket Pivot signal.

How to trade NASDAQ:ARCC?

A breakout could materialize when the stock breaks out to new highs above the current consolidation zone. One could wait for this to happen and buy when this happens. A stop loss could be placed below the consolidation 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.

Keep in mind

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.