Ares Commercial Real Estate Cor (ACRE): Technical Watch as Shares Drop -2.17% For Week

Ares Commercial Real Estate Cor (ACRE) shares are showing negative signals short-term as the stock has finished lower by -2.17% for the week. In taking a look at recent performance, we can see that shares have moved -3.13% over the past 4-weeks, 8.00% over the past half year and 14.76% over the past full year.

Investing in the stock market often requires individuals to gauge how much risk they are willing to take on for potential reward. Piling on too much risk can put the investor out of their comfort zone. On the flip side, taking on too little risk may not provide the opportunity to receive enough returns to achieve previously stated goals. Finding that perfect balance may come with some first-hand experience that includes some trial and error. 

The Relative Strength Index (RSI) is one of multiple popular technical indicators created by J. Welles Wilder. Wilder introduced RSI in his book “New Concepts in Technical Trading Systems” which was published in 1978. RSI measures the magnitude and velocity of directional price movements. The data is represented graphically by fluctuating between a value of 0 and 100. The indicator is computed by using the average losses and gains of a stock over a certain time period. RSI can be used to help spot overbought or oversold conditions. An RSI reading over 70 would be considered overbought, and a reading under 30 would indicate oversold conditions. A level of 50 would indicate neutral market momentum. The 14-day RSI is currently sitting at 41.89, the 7-day is at 31.99, and the 3-day is spotted at 10.38 for Ares Commercial Real Estate Cor (ACRE).

Investors may be tracking certain levels on shares of Ares Commercial Real Estate Cor (ACRE). The current 50-day Moving Average is 15.00, the 200-day Moving Average is 14.31, and the 7-day is noted at 15.08. Moving averages can help spot trends and price reversals. They may also be used to help find support or resistance levels. Moving averages are considered to be lagging indicators meaning that they confirm trends. A certain stock may be considered to be on an uptrend if trading above a moving average and the average is sloping upward. On the other side, a stock may be considered to be in a downtrend if trading below the moving average and sloping downward.

Traders may be relying in part on technical stock analysis. Ares Commercial Real Estate Cor (ACRE) currently has a 14-day Commodity Channel Index (CCI) of -57.16. Despite the name, CCI can be used on other investment tools such as stocks. The CCI was designed to typically stay within the reading of -100 to +100. Traders may use the indicator to determine stock trends or to identify overbought/oversold conditions. A CCI reading above +100 would imply that the stock is overbought and possibly ready for a correction. On the other hand, a reading of -100 would imply that the stock is oversold and possibly set for a rally.

At the time of writing, the 14-day ADX for Ares Commercial Real Estate Cor (ACRE) is 10.87. Many technical chart analysts believe that an ADX value over 25 would suggest a strong trend. A reading under 20 would indicate no trend, and a reading from 20-25 would suggest that there is no clear trend signal. The ADX is typically plotted along with two other directional movement indicator lines, the Plus Directional Indicator (+DI) and Minus Directional Indicator (-DI). Some analysts believe that the ADX is one of the best trend strength indicators available.

There is no shortage of financial news and opinions as we live in the age of the 24 hour news cycle. Headlines and expert opinions seem to be around every corner when dealing with the stock market. Trying to keep up with all the swirling news can make ones head spin. Even though there may be some significant news mixed in, a lot of the headlines may not be worth paying much attention to. Figuring out what information is useful may take some time for the investor to figure out. Once the filter is in place, investors may find it much easier to focus on the important data. Making investment decisions solely based on news headlines may end up causing the portfolio to suffer down the line. 

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