Prospect Capital Corporation (NASDAQ:PSEC) gained 2.29% in the first business day of September, going up from its prior closing price of $6.55 to $6.70. The price has fallen in 7 of the last 10 days and is down by -6.29% over the same course of time. Trading activity decreased by -4.26 million shares, and in total, 4.98 M shares exchanged hands for about $33.39 million. It should be noted that increasing price and decreasing volume show lack of interest and this is a warning that something has fundamentally changed.
Inside PSEC’s Recent Trend
Prospect Capital Corporation (PSEC) lies in the lower of a wide and falling trend in the short term, and this will normally pose a very good buying opportunity. A break down through the resistance trend line at $6.54 will initially point to a quick declining speed. Short-term traders are anticipated to see a retreat of -10.49% over the course of a quarter and, with 90% chance the price will be floating in the range of $5.85 and $7.12 in this timeframe.
Prospect Capital Corporation Technical Signals
PSEC has witnessed its long term and short term MA triggering a sell signal. Many traders watch for long-term averages to cross above short-term averages to signal the beginning of a downtrend. Upon corrections, the price will meet resistance from the averages between $6.89 and $7.75. A buy signal will be generated if it crosses above any of these levels.
Prospect Capital Corporation (NASDAQ:PSEC) Support And Resistance Levels
Prospect Capital Corporation (PSEC) recorded volume accumulation so there will probably be a surplus of buyers at $6.55. In case of gains, the next resistance from accumulated volume will not be far away from today’s level at $6.86, $7.15 and $7.45.
Accumulated volume is going to prevent the price from rising further at $6.86 and this action will lead the price to take a temporary pause or stay muted for a few days.
Prospect Capital Corporation (PSEC) Risk Assessment
A volatility based measure Bollinger Bands suggests this stock poses high risk. In the most recent session, the stock price hovered around $0.21 between high and low, or 3.21%. The average volatility for the past week stood at 3.48%.
Prospect Capital Corporation is in oversold territory based on Relative Strength Index reading (19). In some cases it takes more time for the trend to shift while the stock is being oversold and the Relative Strength Index keeps moving.