Main Street Capital Corporation : Still a great upward potential
February 04, 2013 at 02:30 pm
By
Entry price | Target | Stop-loss | Potential |
---|
US$32.29 |
US$0 |
US$30.7 |
-100% |
---|
Main Street Capital Corporation is trading in a bullish trend and several elements argue for the continuation of this trend.
The consensus revised upward EPS estimates for this year and that let see a great potential for the security on the stock market.
Technically, the security is in an uptrend on all time scales and it is supported by moving averages. The bullish trend will not be stopped until prices are above the USD 30.95 short term support. This trend should allow the stock to reach its USD 36.73 long term resistance, which will be the first target price.
Therefore, taking into account the strong fundamentals and technical patterns, it seems opportune to take a long position at the current price in order to benefit from a possible reversal. The first target price is the USD 36.7 resistance. A breakout of this level will be a new bullish signal for higher target price. A stop loss will be fixed under the USD 30.95 short term, threshold that would invalidate this trading strategy.
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