Over the last four months, a resistance level has formed in the chart of Stellus Capital Investment Corp (SCM).
Stellus Capital Investment Corp (SCM) is a closed-end, non-diversified management investment company. Its objective is to maximize the total return to its stockholders in the form of current income and capital appreciation. The company surpassed estimates for the third quarter, but EPS were slightly down year over year.
Take a look at the 1-year chart of SCM below with added notations:
Chart of SCM provided by TradingView
Beginning in April, SCM began forming a key level of resistance at the $9 (red) mark. The stock has tested that $9 area multiple times since then, and a solid close above $9 should lead to higher prices for SCM.
A long trade could be entered on a breakthrough of the $9 level.
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SCM shares were trading at $8.29 per share on Friday morning, down $0.01 (-0.12%). Year-to-date, SCM has declined -38.03%, versus a 6.11% rise in the benchmark S&P 500 index during the same period.
About the Author: Christian Tharp, CMT
Christian is an expert stock market coach at the Adam Mesh Trading Group who has mentored more than 4,000 traders and investors. He is a professional technical analyst that is a certified Chartered Market Technician (CMT), which is a designation awarded by the CMT Association. Christian is also the author of the daily online newsletter Todays Big Stock.Chart of the Day: A Resistance Level in Stellus Capital Investment (SCM) appeared first on StockNews.com