FS Investment Corporation (FSIC) has been having a set of eventful trading activity and it is clear from an examination of the charts that traders are now fully aware of the company’s key metrics. A deeper exploration of the setup is sure to yield a clearer picture of why FSIC is trending in the way it is presently – let’s move right into that. The greatest test of commitment to sound trading strategies is the use of technical charts; it is therefore important to keep that in mind as we take a deep look at the current stock.
FSIC’s present state of movement can best be assessed by looking at its current day’s high $9.30 and the corresponding low of $9.15. It is important to note that the current day’s high figures poorly when compared to the trailing 52-week high of $10.56 achieved by FSIC on 06/24/16. The corresponding low also paints a picture and suggests that the low is nothing but a 20.62% since 03/01/17. From a trading perspective, this is a good sign for anyone keen on making big gains from the stock’s prevailing upside potential. Of course the current trading setup is getting a lot of attention from analysts. Most have laid bare their sentiments on the stock as you can see from the following: The target price for FSIC is $10.00; this target is below the most recent high recorded for the stock. These data points are key areas savvy traders will be monitoring.
Many traders are now starting to take a look at the stock and they are eyeing it with a few other technical indicators in mind. Technical indicators don’t get more indicative than the measures called Relative strength indicator (RSI) and Stochastic. The numbers for FSIC, based on these two very powerful indicators, are indeed very telling. Let’s see what they say in greater detail. The current reading for FSIC, where the 14-day RSI is concerned, is 26.73%. This means, based on the reading, that FSIC is currently oversold, presenting the possibility that the stock bottomed out and now offers potential upside on a price rally. The stochastic reading is also gives consistent interpretations. In relation to FSIC, there is a stochastic reading of 11.08%. This means, based on the stochastic data, that FSIC is oversold at current levels.
FSIC composite picture doesn’t end with either the RSI or the Stochastic, however; there are also compelling readings being presented by the stock’s 50 and 200 SMAs. FSIC, on account of current trends displayed on its moving averages, appear in all ways and from all angle of analysis, to be bearish. Traders and investors have naturally seized upon this current positioning of the stock and general sentiment appears to be negative.
You could of course use the technical picture outlined so far to make a decision either way on the merit of the stock, but why stop there? Below we’ll round out the analysis with another set of technical touchpoints. FSIC’s -0.65 has now manifested a clearer vein of trading and investing sentiment. When analyzed closely, this sentiment appears to be largely negative assessed over the trailing 30 days of data. FSIC isn’t standing still by any means and the stock has underperformed the S&P 500 by -4.12. The consequences of this performance have been stark; the stock is now trading on lower volatility levels when compared to matched against companies operating in the same sector. Historical volatility is also showing why FSIC is on the radar of a lot of traders. This reading for historical volatility is 15.81%. FSIC is also pointing to strong readings on the Average True Range – a very important technical touch point that shouldn’t be ignored. That ATR reading is 1.99. FSIC, when analyzed from the vantage points of maximum clarity, has made it obvious which direction the wind is blowing. No savvy trader can say they’ve missed the stock’s positioning premise.