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BlackRock Capital Investment Co Message Board

  • jadelover888888888 jadelover888888888 Apr 18, 2013 10:22 PM Flag

    Death Cross for BKCC

    According to Yahoo, the 50 day moving average of BKCC, 10.01, is now below the 200 day moving average of 10.11, that means it had reached its "death cross" which may be a strong sell signal especially confirmed by its recent high volume (1.5M on 4/15). Incidentally gold had just reached its death cross about one day ago and it started free fall. Today's closing price of BKCC, at 9.29 was below that of both its 50D MA (10.01) and 200D MA (10.11), unless it will start climbing up soon, it may continue to fall to its 12-mo low of 8.99 happened on 5/8/12. Therefore the next support level will be $9 and if it drops below that, it may continue to fall.

    "Sell Signals

    The 10-week and 50-day moving average lines can also tell you when a stock is breaking down.

    If you see a stock fall below its 50-day moving average line on its heaviest volume in months, it's a sign big investors are selling, rather than buying. You might want to consider following their lead and selling at least some of your position.

    Stocks that suffer such high-volume drops below their moving average lines may go on to form a base and eventually recover, once again notching big gains. Or they may continue to slide."

    Be warned.

    P.S. Based on the Thumbs down I received for my other message, it appears some of the BKCC investors posted here did not like what I told them and they believe if they can continue to buy more BKCC shares when it drops, at least they will be compensated with higher and higher dividends. Unfortunately, in real life, it does not always work like that, some time it is better to cut the loss and buy back the stock when it stops falling and starts rising back. That will be a long wait for BKCC, unfortunately. I actually believe BKCC will fall below $9 in the next three months.

8.20-0.12(-1.44%)Sep 26 4:00 PMEDT