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February 22, 2023
Ares Capital trades at $19.35, after ending yesterday at $19.32.
United States FOMC Meeting Minutes is next today at 19:00 UTC.
This uncertain state for Ares Capital is reflected by published market data as United States Existing Home Sales (Jan) released yesterday at 15:00 UTC with a figure of 4 million, while the previous figure was 4 million. United States 2-Year Note Auction came out at 4.673. United States Existing Home Sales released earlier showed a marked improvement to -0.7% from the preceding data of -2.2%, but fell short of the 2% figure forecast by a consensus of market analysts.
As the trading day commences, technical analysis suggests Ares Capital Corporation is approaching key support, around 19 cents away from $19.16. Dipping below could indicate further losses are ahead while a failure to break below this level is likely to be seen positively by market bulls. Trend-focused traders would be interested to note that the Commodity Channel Index (CCI) indicator is below -100, meaning the market price is unusually low and below its rolling moving average. Technical analysis indicates that a new, strong downtrend could be forthcoming with short positions favored. Analysis based on the asset volatility indicates that Ares Capital's upper Bollinger Band® is at $20.04 and the lower is $19.24.
All in all, the technical analysis suggests Ares Capital has no clear-cut direction.
Meanwhile, mixed performances are seen in other financials stocks as after closing the previous session (yesterday) at $39.04, HSBC Holdings lost 66 cents and is trading around $38.38. HDFC Bank Limited is trading around $67.23 (down 2.29%). After closing the previous session (yesterday) at $102.11, Royal Bank Of Canada lost $1.19 and is trading around $100.92.
Data to be released later is expected to clarify investor sentiment while boosting price action volatility as tomorrow at 16:00 UTC data for United States Crude Oil Inventories will be released, with an expected decline to 1.17 million from the preceding figure of 16.28 million. Tomorrow at 13:30 UTC data for United States Initial Jobless Claims will be released, with an expected decline to 200,000 from the preceding figure of 194,000. United States GDP is expected tomorrow at 13:30 UTC.
The stock has been trending positively for about 2 months. The financial solutions provider is now trading 14.73% above the significant low ($16.84) it slumped to 4 months ago.
