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Possible Bullish Inside Day Candle Pattern Detected for Capstead Mortgag (NYSE:CMO)

By James Quinn

SmarTrend's candlestick scanner has spotted a possible bullish inside day candle pattern in Capstead Mortgag (NYSE:CMO) based on the price action in the company's shares. Yesterday's price range of $8.57 and $8.71 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. Traders and investors interested in shares of Capstead Mortgag may want to consider an appropriate entry level in the event a reversal to the upside transpires. It is important to look for confirmation.

Capstead Mortgage Corporation is a real estate investment trust and earns income from investing in real-estate related assets on a leveraged basis. The Company's investments currently consist primarily of residential ARM securities issued and guaranteed by government-sponsored entities.

Potential upside of 28.2% exists for Capstead Mortgag, based on a current level of $8.58 and analysts' average consensus price target of $11.00. The stock should find initial resistance at its 50-day moving average (MA) of $9.76 and further resistance at its 200-day MA of $9.81.

In the past 52 weeks, Capstead Mortgag share prices have been bracketed by a low of $8.17 and a high of $11.41 and closed yesterday at $8.58, 5% above that low price. In the last five trading sessions, the 50-day moving average (MA) has remained constant while the 200-day MA has slid 0.4%.

SmarTrend recommended that its subscribers protect gains by selling shares of Capstead Mortgag on July 27th, 2017 by issuing a Downtrend alert when the shares were trading at $9.76. Since that call, shares of Capstead Mortgag have fallen 12.3%. We are now looking for when a new Uptrend will commence and will alert SmarTrend subscribers in real time.

Keywords: bullish am inside day candle capstead mortgag

Ticker(s): CMO