American Capital Agency
Nearest Resistance: $32
Nearest Support: $31.50
Catalyst: Share Offering
$11 billion real estate investment trust American Capital Agency (AGNC - Get Report) is another stock that's getting sold off in today's session, albeit for a different reason. AGNC is off around 3% this afternoon following a share offering announcement -- the firm announced yesterday that it planned to sell 50 million shares on the open market. Offerings are rarely positive because they indicate a pressing need for cash and dilute existing owners' stakes; Mr. Market is reacting expectedly.
From a technical standpoint, the news derailed the near-term uptrend that shares have been enjoying since November. While that doesn't mean that shares are likely to drop from here (they're very close to support at $31.50), I'd recommend for a floor to get established before jumping onboard this name.