Friday, March 28, 2014

Green Dot Corporation (NYSE: GDOT)

Green Dot Corporation, together with its subsidiaries, operates as a technology-centric, pro-consumer bank holding company that provides personal banking for the masses. It offers prepaid debit card products and prepaid card reloading services in the United States, as well as mobile banking services with its GoBank mobile bank account offering. The company’s products include Green Dot MasterCard, Visa-branded prepaid debit cards, and various co-branded reloadable prepaid card programs; Visa-branded gift cards; and MoneyPak and swipe reload proprietary products, which enable cash loading and transfer services through its Green Dot Network.
Please take a look at the 1-year chart of Green Dot (NYSE: GDOT) below with my added notations:
1-year chart of Green Dot (NYSE: GDOT)
GDOT had held an important level of support at $20 (blue) for the last 9 months, and that level had also been a previous resistance. After rallying back up near $22 earlier this month, the stock came back down to $20 yet again. Yesterday GDOT finally closed below the $20 support and should be moving overall lower from here.

The Tale of the Tape: GDOT had a key level of support at $20. Now that the stock has broken support, a trader might want to enter a short trade at or near the $20 level with a stop placed above that level. A break back above $20 could negate the forecast for a move lower.
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