Finance Firm Extended After 10-Day Winning Streak Thursday, October 15, 2009 - CANSLIM.net |
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Credit Acceptance Corp (CACC +$0.19 or +0.52% to $36.50) posted a 10th consecutive gain for a new high close well above its "max buy" level. Prior chart highs in the $32 area are now an important support level to watch on pullbacks. Disciplined investors might watch for a light volume pullback to offer an opportunity to accumulate shares without chasing them more than +5% above its prior chart highs. The high-ranked Finance-Consumer/Commercial Loans firm found prompt support near its prior chart highs during a brief pullback immediately following its 9/29/09 breakout with a considerable gain backed by more than 2 times average volume. Since triggering a technical buy signal we have noted that, "There is no overhead supply to hinder its upward price progress." However, it is now extended from its latest sound base, thus it is no longer buyable under the investment system guidelines. Since featured it has also risen above its 2006-2007 highs ($33-34) to new all-time highs, which is a very reassuring sign of strength. CACC was featured in yellow in the 9/29/09 mid-day report (read here). |
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