FS Investment Now Rated 'Hold' But It Could Do Better

FS Investment Corp. (FSIC) was downgraded by TheStreet's quantitative service today. The downgrade was to "HOLD". According to a company statement, FS Investment is a "business development company focused on providing customized credit solutions to private middle market U.S. companies." FSIC has been in a downtrend the past year but with this quantitative downgrade let's see what the risk/reward profile looks like from the charts and indicators.

In this daily bar chart of FSIC, below, we can see the pattern of lower lows and lower highs since February. Prices have tested the declining 50-day moving average line a number of times but we have failed to see sustained strength above the line. The 200-day moving average line has been weakening since May. Check the volume of trading - very heavy in December - and this might indicate a shift in ownership....187 more words left in this article. To read them, just click below and try Real Money FREE for 14 days.

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