SmarTrend's candlestick scanner has spotted a possible bearish inside day candle pattern in American Capital (NASDAQ:ACAS) based on the price action in the company's shares. Today's price range of $11.55 and $11.68 is within yesterday's high and low of the day. This trading action often signifies indecision by bulls and bears to drive prices higher or lower and often implies a possible change in trend. Owners of American Capital may want to consider a possible hedge in the event a pullback occurs. Look for confirmation in the next few trading days.

Over the past year, American Capital has traded in a range of $6.34 to $12.24 and is now at $11.59, 83% above that low. Over the last five market days, the 200-day moving average (MA) has gone up 0.6% while the 50-day MA has advanced 0.3%.

American Capital Ltd. is an alternative asset manager. The Company, directly and through its global asset management business, invests in employee and management buyouts, private equity buyouts, and early stage and mature private and public companies. American Capital provides debt and equity to fund growth, acquisitions, recapitalizations, and securitizations.

Potential upside of 12.9% exists for American Capital, based on a current level of $11.59 and analysts' average consensus price target of $13.08. American Capital shares should encounter resistance at the 50-day moving average (MA) of $11.59 and support at its 200-day MA of $9.89.

SmarTrend recommended that subscribers consider buying shares of American Capital on January 19th, 2012 as our proprietary SmarTrend analytics indicated a new Uptrend was in progress when shares hit $7.75. Since that recommendation, shares of American Capital have risen 48.5%. We continue to monitor ACAS for any potential shift so investors can protect gains and will alert SmarTrend subscribers immediately.