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Possible Bearish Inside Day Candle Pattern Detected for American Capital (NASDAQ:ACAS)

By David Diaz

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. Yesterday's price range of $16.52 and $16.57 is within the prior day'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.

American Capital share prices have moved between a 52-week high of $16.62 and a 52-week low of $11.92 and closed yesterday at 39% above that low price at $16.54 per share. Over the last five market days, the 200-day moving average (MA) has gone up 0.3% while the 50-day MA has advanced 1.4%.

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.

American Capital (NASDAQ:ACAS) has potential upside of 2.8% based on a current price of $16.54 and analysts' consensus price target of $17.00. The stock should find initial support at its 50-day moving average (MA) of $15.05 and further support at its 200-day MA of $13.92.

SmarTrend recommended that subscribers consider buying shares of American Capital on March 3rd, 2016 as our proprietary SmarTrend analytics indicated a new Uptrend was in progress when shares hit $14.01. Since that recommendation, shares of American Capital have risen 18.0%. We continue to monitor ACAS for any potential shift so investors can protect gains and will alert SmarTrend subscribers immediately.

Keywords: bearish am inside day candle american capital

Ticker(s): ACAS