Ares Capital jumps to $18.18 up 2.08%

The business development company trades at $18.18 today, after closing yesterday at $17.81 and gaining 37 cents (2.08%).

United States's Pending Home Sales new data released of -5.2% below its previous figure.

Ares Capital's uptick comes amid good United States macroeconomic data released during the day — data for United States Initial Jobless Claims published today at 12:30 UTC came out at 230,000, beating projections of 248,000 and showing improvement over the preceding figure of 246,000.

Nevertheless, following a previous reading of 0.8%, Pending Home Sales in United States released today at 14:00 UTC fell short of the 0.5% figure expected by analysts with an actual reading of -5.2%. GDP in United States fell short of market expectations (two) with a reading of 1.1, continuing the decline from the previous figure of 2.6.

Trend-following investors would be interested to note that Ares Capital Corporation made an initial breakout above its 21 day Simple Moving Average at $18.17, a potential indicator of a newly emerging bullish phase. According to asset volatility analysis, Bollinger Band® analysis indicates that current price action is approaching the upper band at $18.59, thereby suggesting that Ares Capital is becoming overvalued. Technical analysis shows that Ares Capital price action is currently oscillating around the $18.02 resistance level with prices moving above and below several times during the session.

All in all, the technical analysis suggests Ares Capital has no clear-cut direction.

This rally in Ares Capital's share price coincides with other financials stocks as S&P Global is trading at $353.67 after ending yesterday's session at $340.07 (up 4%). JP Morgan Chase gained 1.35%, currently at $137.06. Royal Bank Of Canada is up 1.3% to $98.2.

Furthermore, the market is looking at United States Core PCE Price Index (MoM) (Mar) scheduled to come out tomorrow at 12:30 UTC.

The stock has been trending positively for about a month. The business development company is now trading 9.23% below its 3-month high of $20.96.