Building on four days of gains, Ares Capital increases 0.96% in pre-market trading after closing at $18.72 (+0.75%) Friday

Pre-open trade suggests a higher market open today with Friday's bullish sentiment adding to the risk-on mood. An influx of buyers helped the business development company to end the session higher around $18.72, while establishing a $18.6 to $18.86 session range Friday.

Ares Capital Corporation made an initial breakout above its 200 day Simple Moving Average at $18.86, a potential indicator of a newly emerging bullish phase. Despite this, Bollinger Band® analysis indicates that current price action is approaching the upper band at $18.78, thereby suggesting that Ares Capital is becoming overvalued. Although Ares Capital is appreciating today after rising as high as $18.86, price action is now slowing and consolidating around 14 cents below the $18.86 resistance level.

Overall, looking at the technical analysis landscape, it seems Ares Capital likely to continue pointing upward in the short term.

While Ares Capital was bullish Friday, the following financials stocks underperformed: Morgan Stanley dips 2.66% Friday to close at $84.49. Mastercard went down 1.65%, closed at $392. Bank of America withdraws 1.26% Friday to close at $28.47.

The stock has been trending positively for about a month. The financial solutions provider reached a significant high of $20.7 around 9 months ago but has lost 10.24% since then.