Trading Indicator Review for Main Street Capital Corp (MAIN)

Checking today’s screens, we are showing that shares of Main Street Capital Corp (MAIN) presently have a 7 day ADX signal of Buy. This signal is generally used to help determine the market trend. The 7-day ADX direction is currently Strongest. This signal shows whether the Buy or Sell signal is getting stronger or weakening, or whether the Hold is heading towards a Buy or Sell. The 7-day average directional strength is Weak. This trend strength indicator measures the signal based on historical performance where minimum would represent the weakest, and maximum would represent the strongest. 

Individual investors may tend to become more bullish at market tops and more bearish at the bottoms. This goes against the buy low sell high mantra that is widely preached in the investing community. The two emotions that come into play here are greed and fear. Investors tend to get greedy when they see stocks flying to new highs. It can be very tempting to get in on a name that has been running hot for a time. On the other side of the coin, investors often get fearful when the market is tanking. The fear of losing becomes prevalent when this occurs, and investors may be tempted to sell like the rest. Although this goes against logic, many investors will still end up buying high and selling low.

Turning the focus to earnings, we note that Main Street Capital Corp (MAIN), for the most recent period, posted quarterly EPS of 0.69. The trailing 12 month earnings number is currently 2.61. The company’s EPS growth over the previous quarter clocks in at 9.52%. The EPS metric is frequently used to measure a company’s profitability based on each outstanding share of common stock. When a company reports earnings results, the majority of the attention is on whether or not the EPS estimate is hit or missed. Wide gaps between estimates and actual reported figures may result in above normal stock price fluctuations after the earnings report.

Focusing in on some other data, we can see that the stock has a weighted alpha reading of +2.84. The weighted alpha gauges how much the stock has increased or decreased over the period of one full year. The weighting puts higher emphasis on more recent activity providing a more relevant measure for short-term technical analysts to use. A positive weighted alpha reading indicates that the stock has risen over the past year. A negative reading would indicate that the stock is down over that same time period. Technical traders often use the weighted alpha to help discover stocks that are building momentum.

Investors may be interested in viewing some other important technical stock indicators for Main Street Capital Corp (MAIN). Investors are often focused on share price support and resistance levels. The support is simply a level where a stock may see a bounce after it has fallen. If the stock price manages to break through the first support level, the focus may shift to the second level of support. The resistance is the opposite of support. As a stock rises, it may see a retreat once it reaches a certain level of resistance. After a recent check, the stock’s first resistance level is 38.44, and the second resistance level is 38.62. On the other end, investors are keeping an eye on the first support level of 38, and the second support level of 37.74.

Checking in on the 20-Day Bollinger Bands signal, the current reading is Hold. This short-term indicator may be used to help spot oversold and overbought conditions. The current direction of the signal is Bullish.

Even though the stock market can seem erratic and unpredictable, investors may be able to take some steps to help combat the chaos. One thing that investors have the ability to do is create an overall plan and stick to it. This may be one of the single most important factors in achieving success in the stock market. Of course, if something doesn’t seem to be working over an extended period of time, then maybe some action may need to be taken and the plan should be adjusted. Scrapping a plan too early may bring about a lot of unnecessary worry and confusion. Staying disciplined and keeping the proper perspective might help the investor better position themselves on the front lines.