As traders prepare for a higher market open today, Friday's bearish sentiment is in focus: the business development company plunged into the red after losing 2%, declining to $18.25.
Ares Capital Corporation made an initial break below its 50 day Simple Moving Average at $18.72, a possible indication of a forthcoming negative trend. Ares Capital formed a session range of $18.19 to $18.86 leaving buyers and sellers highly concentrated around an active Fibonacci support level of $18.4. Ares Capital's upper Bollinger Band® is at $18.7 which indicates a further downward move may follow. Despite this, although Ares Capital is pointing down today (was as low as $18.19), it's climbing away from the $18 support line and is now 25 cents above it.
Several technical indicators are adding weight to the bearish momentum seen Friday and forecasting Ares Capital to extend its recent losses.
On the other hand, positive performances could be seen by looking at other financials stocks as JP Morgan Chase traded at $138.73 after closing Friday's trading day at $129 (up 7.55%). BlackRock was up 3.07%. Bank of America added 3.36% to its value, and traded at $29.52.
The financial solutions provider has fallen back around 17% from the significant high of $22.44 set 11 months ago.