Prospect Capital Corporation (NASDAQ:PSEC) fell by -1.96% in Wednesday’s trading session from $6.63 to $6.50 and has now fallen 6 consecutive sessions. The price has fallen in 5 of the last 10 days and is down by -2.55% over the same course of time. Volume has increased in Wednesday’s trading session by 2.67 million shares, but on a weak note. This is may be an early warning and the risk will be increased slightly for the next couple of days. In total, 4.86 M shares exchanged hands for about $31.60 million.
Inside PSEC’s Recent Trend
Prospect Capital Corporation (PSEC) lies the upper part of a wide and falling trend in the short term, and this will normally pose a very good selling opportunity for the short-term trader as reaction back towards the lower part of the trend can be expected. A break down through the support point at $6.63 will initially suggest a lower tendency for declines in the price and this might very well be an early sign that a trend shift is coming. Short-term traders are anticipated to see a retreat of -24.01% over the course of a quarter and, with 90% chance the price will be floating in the range of $4.28 and $5.04 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 $6.68 and $6.77. A buy signal will be generated if it crosses above any of these levels. Its pivot point high generated sell signal on Wednesday October 04, 2017, which calls for additional declines until the stock forms a new pivot point low, as this could be a buying opportunity. Volume up and price depreciating is getting our attention as this movement is seen as bearish sign.
Prospect Capital Corporation (NASDAQ:PSEC) Support And Resistance Levels
There is no support from accumulated volume below today’s level and given the right condition the stock may perform very badly in the next couple of days. In case of gains, the next resistance from accumulated volume will not be far away from today’s level at $6.55, $6.72 and $7.45.
Accumulated volume is going to prevent the price from rising further at $6.55 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
The number of shares changed hands in the stock is good, indicating the interest and low risk associated with it. In the most recent session, the stock price hovered around $0.15 (2.32%) between intraday high and intraday low. Each day in the past 1 week, the average volatility remained at 1.36%.
Prospect Capital Corporation is in oversold territory based on Relative Strength Index reading (28). 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.