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May 03, 2023
Ares Capital is in the midst of a 3 day downtrend. Today's positive session could indicate a brief correction amid a broader downtrend, or, the start of a potential reversal. Small gain for Ares Capital at $18.14 after ranging between $18.08 and $18.23 today.
United States FOMC Statement is next today at 18:00 UTC.
Nevertheless, highly important Crude Oil Inventories data from United States beat analyst expectations of -1.1 million with a reading of -1.28 million.
Meanwhile, United States ISM Non-Manufacturing PMI (Apr) released today at 14:00 UTC with a figure of 51.9, while the previous figure was 51.2. United States Services PMI came out at 53.6, while a consensus of analysts was expecting 53.7.
Ares Capital Corporation made an initial breakout above its 5 day Simple Moving Average at $18.18, a potential indicator of a newly emerging bullish phase. Price action remains constrained around the key Fibonacci level of $18.18 currently serving as resistance Ares Capital's lower Bollinger Band® is at $17.81, indicating that the market is oversold and fertile for new buyers. Despite this, Ares Capital could be slowing down soon; it is getting close to the resistance line and is now at $18.28, only 14 cents away. Crossing the resistance line could, however, suggest that further gains are ahead.
Ares Capital continues to move higher with technical analysis indicating the trend will continue in the short term.
This rally in Ares Capital's share price coincides with other financials stocks as Wells Fargo & Company gained 0.97%, currently at $39.22.
While Ares Capital is higher so far today, these financials stocks are struggling: after closing the previous session (yesterday) at $138.92, JP Morgan Chase lost $1.13 and is trading around $137.78.
Also worthy of note, as things stand, upcoming United States Initial Jobless Claims data is projected to fall short of market expectations with newly published data of 240,000, following on from the preceding figure of 230,000. New data is set to be published tomorrow at 12:30 UTC.
Elsewhere, United States Interest Rate is expected today at 18:00 UTC. United States FOMC Statement is scheduled for today at 18:00 UTC.
The stock has been trending positively for about a month. The financial solutions provider has shed 8.8% over the past three months.
