Financial Firm Consolidating After Getting Extended From Latest Base
Monday, March 29, 2010 CANSLIM.net
Ezcorp Inc (EZPW +$0.30 or +1.43% to $21.22) is a high-ranked Finance - Consumer/Commercial Loans firm that is now quietly consolidating well above its 50-day moving average (DMA) line and its recent chart low ($19.73 on 3/16/10) which define near-term support above prior chart highs. It is extended from its latest sound base of support. As previously noted, "Since it managed to top its 2008 all-time high, no resistance remains due to overhead supply, but disciplined investors avoid chasing extended stocks trading more than +5% above prior chart highs."
EZPW was featured in yellow with new pivot point and may buy levels noted in the 2/19/10 mid-day report (read here). It followed a negative reversal on 2/19/10 with a considerable gain on the very next session (2/22/10) with twice average volume triggering a technical buy signal. By the evening of 2/24/10 its color code was changed to green as it had rallied above its "max buy" level. This previously featured stock was dropped from the Featured Stocks list on 10/09/08, yet it continued to show strong sales and earnings growth (solid fundamentals). Earnings per share increases have shown acceleration along with greater than +25% sales revenues increases in the latest quarterly comparisons (good C criteria) versus the year earlier, and a great annual earnings history (good A criteria).