Ares Capital Corporation Stock Forecast
Green day on Wednesday for Ares Capital Corporation
(Updated on Apr 24, 2024)
The Ares Capital Corporation stock price gained 0.241% on the last trading day (Wednesday, 24th Apr 2024), rising from $20.74 to $20.79. It has now gained 6 days in a row. It is not often that stocks manage to gain so many days in a row, and falls for a day or two should be expected. During the last trading day the stock fluctuated 0.629% from a day low at $20.68 to a day high of $20.81. The price has risen in 7 of the last 10 days and is up by 1.96% over the past 2 weeks. Volume has increased on the last day along with the price, which is a positive technical sign, and, in total, 36 thousand more shares were traded than the day before. In total, 2 million shares were bought and sold for approximately $43.66 million.
The stockis at the upper part of a narrow and horizontal trend and normally this may pose a good selling opportunity but a break-up through the top trend line at $20.93 will give a strong buy signal and a trend shift could be expected. Given the current horizontal trend, you can expect Ares Capital Corporation stock with a 90% probability to be traded between $20.38 and $21.26 at the end of this 3-month period. A break of a horizontal trend is often followed by a large increase in the volume, and stocks seldom manage to go directly from the bottom of a trend up to the top. Stocks turning up in the middle of a horizontal trend are therefore considered to be potential runners.
Ready to grow your portfolio? Here's your beginner's guide to opening a free brokerage account.
ARCC Signals & Forecast
The Ares Capital Corporation stock holds buy signals from both short and long-term Moving Averages giving a positive forecast for the stock. Also, there is a general buy signal from the relation between the two signals where the short-term average is above the long-term average. On corrections down, there will be some support from the lines at $20.54 and $20.40. A breakdown below any of these levels will issue sell signals. A buy signal was issued from a pivot bottom point on Monday, April 15, 2024, and so far it has risen 2.72%. Further rise is indicated until a new top pivot has been found. Volume is rising along with the price. This is considered to be a good technical signal. Some negative signals were issued as well, and these may have some influence on the near short-term development. Furthermore, there is currently a sell signal from the 3 month Moving Average Convergence Divergence (MACD). The stock had a Golden Star Signal on Monday, March 25, 2024 in the short-term chart.
Golden Star Signal is when the short-term moving average, the long-term moving average, and price line meet in a special combination. This combination is very rare and often followed by long and strong gains for the stock in question.
Golden Star
The stock had a Golden Star Signal on Monday, March 25, 2024 in the short-term chart.Golden Star Signal is when the short-term moving average, the long-term moving average, and price line meet in a special combination. This combination is very rare and often followed by long and strong gains for the stock in question.
A sell signal from a double top formation was found on Thursday, March 28, 2024 and based on theory for this formation the price should fall by -7.74% to $19.18 within 11 trading days since signal was issued (Thursday, April 25, 2024).
Support, Risk & Stop-loss for Ares Capital Corporation stock
Ares Capital Corporation finds support from accumulated volume at $20.24 and this level may hold a buying opportunity as an upwards reaction can be expected when the support is being tested.
In general the stock tends to have very controlled movements and with good liquidity the risk is considered very low in this stock. During the last day, the stock moved $0.130 between high and low, or 0.629%. For the last week the stock has had daily average volatility of 0.81%.
Since the Ares Capital Corporation has been rising for 6 days in a row, the risk over the next couple of days has increased. We don't expect a major reaction as the stock is in very good shape technically, and therefore hold a positive evaluation despite the very short term risk.
Our recommended stop-loss: $19.76 (-4.97%) (This stock has low daily movements and this gives low risk. There is a buy signal from a pivot bottom found 7 days ago.)
Trading Expectations (ARCC) For The Upcoming Trading Day Of Thursday 25th
For the upcoming trading day on Thursday, 25th we expect Ares Capital Corporation to open at $20.76, and during the day (based on 14 day Average True Range), to move between $20.57 and $21.01, which gives a possible trading interval of +/-$0.218 (+/-1.05%) up or down from last closing price. If Ares Capital Corporation takes out the full calculated possible swing range there will be an estimated 2.10% move between the lowest and the highest trading price during the day.
Since the stock is closer to the resistance from accumulated volume at $20.82 (0.14%) than the support at $20.24 (2.65%), our systems don't find the trading risk/reward intra-day attractive and any bets should be held until the stock is closer to the support level.
Earnings coming up
Ares Capital Corporation will release earnings BMO on Wednesday, May 01, 2024.The consensus among the analysts for the expected earnings (EPS) is $0.590. We will update the financials statements for Ares Capital Corporation, that can be found here as soon as the records are public. Our systems has calculated a possible swing of +/- 3.15% in the first trading day after earnings release.
Is Ares Capital Corporation stock A Buy?
Several short-term signals are positive and we conclude that the current level may hold a buying opportunity, as there is a fair chance for Ares Capital Corporation stock to perform well in the short-term period.
Current score: 2.368 Buy Candidate Unchanged
Predicted Opening Price for Ares Capital Corporation of Thursday, April 25, 2024
| Fair opening price April 25, 2024 | Current price |
|---|---|
| $20.76 ( 0.144%) | $20.79 |
The predicted opening price is based on yesterday's movements between high, low, and closing price.
Trading levels for ARCC
Fibonacci Support & Resistance Levels
| Level | Price | |||
|---|---|---|---|---|
| Resistance | R3 | 20.89 | 0.481 % | |
| R2 | 20.84 | 0.242 % | ||
| R1 | 20.81 | 0.0946 % | ||
| Current price: | 20.79 | |||
| Support | S1 | 20.71 | -0.383 % | |
| S2 | 20.68 | -0.531 % | ||
| S3 | 20.63 | -0.770 % |
Accumulated Volume Support & Resistance Levels
| Level | Price | |||
|---|---|---|---|---|
| Resistance | R3 | 0 | . | |
| R2 | 0 | . | ||
| R1 | 20.82 | 0.144 % | ||
| Current price | 20.79 | |||
| Support | S1 | 20.24 | -2.65% | |
| S2 | 20.23 | -2.69% | ||
| S3 | 20.11 | -3.27% |
ARCC Dividend Payout History
| # | Ex-Date | Pay Date | Amount | Yield | |
|---|---|---|---|---|---|
| 1 | Feb 07, 2024 | Mar 14, 2024 | Mar 29, 2024 | $0.480 | 2.31% |
| 2 | Oct 24, 2023 | Dec 14, 2023 | Dec 28, 2023 | $0.480 | 2.39% |
| 3 | Jul 25, 2023 | Sep 14, 2023 | Sep 29, 2023 | $0.480 | 2.47% |
| 4 | Apr 25, 2023 | Jun 14, 2023 | Jun 30, 2023 | $0.480 | 2.55% |
| 5 | Feb 07, 2023 | Mar 14, 2023 | Mar 31, 2023 | $0.480 | 2.63% |
FAQ
Click here for our free guide on how to buy Ares Capital Corporation Stock.
