Ares Capital up 0.19%, trading around $18.16

After closing at $18.13 yesterday, Ares Capital began today at $18.12 with significant bullish sentiment driving Ares Capital's price action higher. So far today, price action has drawn out a distinct $18.02 to $18.2 range.

Ares Capital is currently trading at $18.16 following the release of Services PMI data from the United States.

At the same time, United States Services PMI came out at 53.7, while a consensus of analysts was expecting 51.5. United States Existing Home Sales (Mar) released yesterday at 14:00 UTC with a figure of 4.44 million, while the previous figure was 4.55 million. United States Philadelphia Fed Manufacturing Index (Apr) released yesterday at 12:30 UTC with a figure of -31.3, while the previous figure was -23.2.

Although up today, early price action saw Ares Capital Corporation dropping below its 21 day Simple Moving Average at $18.04 — an early indicator that a new downward trend could be emerging. Bollinger Band® analysis indicates that current price action is approaching the upper band at $18.64, thereby suggesting that Ares Capital is becoming overvalued. Ares Capital could be slowing down soon as it approaches resistance at $18.29. Of course, crossing it might suggest further gains are ahead.

Examining the technical analysis landscape, Ares Capital is likely to reverse course and start pointing downward in the short term.

Rallies can also be seen in other financials stocks, HDFC Bank Limited is up 1.39% to $70.81.

While Ares Capital is higher so far today, these financials stocks are struggling: BlackRock is down 2.24% from the beginning of the session and now trades around $680.8. The Blackstone Group Inc. is trading around $90.04 (down 2.07%).

The financial solutions provider is trading 19.21% lower compared to the $22.44 high it reached over the past year.