Friday, March 7, 2014

EZCORP Inc (NASDAQ: EZPW)

EZCORP, Inc. provides specialty consumer financial services. The company offers pawn loans that are non-recourse loans collateralized by tangible personal property, including jewelry, consumer electronics, tools, sporting goods, and musical instruments; sells merchandise comprising second-hand collateral forfeited from its pawn lending activities or purchased from customers, and new or refurbished merchandise from third party vendors; and buys and sells second-hand goods. It also provides various financial services, such as unsecured consumer loans, including single-payment loans, multiple-payment loans, lines of credit, and payroll withholding loans; secured consumer loans comprising single-payment and multi-payment auto title loans, and auto title line of credit; and debit cards. In addition, the company offers payroll deduction loans and online loans; fee-based credit services to customers seeking loans; and advice and assistance to customers in obtaining loans from unaffiliated lenders.
To review EZ’s stock, please take a look at the 1-year chart of EZPW (EZCORP, inc.) below with my added notations:
1-year chart of EZPW (EZCORP, inc.)
EZPW has formed a key price level at $12.00 (blue) over the last (2) months. You can see how that level has been both a current support and prior resistance. In addition, the stock has created a down trending resistance starting from the middle of February (red). These two lines combined have EZPW stuck trading within a common chart pattern known as a descending triangle (or a pennant). At some point, the stock has to break support or break its string of lower highs.

The Tale of the Tape: EZPW has formed a descending triangle pattern. A short trade could be made on a break of the $12 support level. A breakthrough $13 would break the down trending resistance and would set up a potential long trade.
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