Rent-A-Center Inc (NASDAQ: RCII)

Rent-A-Center, Inc., together with its subsidiaries, leases household durable goods to customers on a rent-to-own basis. The company operates in four segments: Core U.S., Acceptance Now, International, and Franchising. It offers durable products, such as consumer electronics, appliances, computers, furniture, and accessories under rental purchase agreements. The company also provides merchandise on an installment sales basis; and offers the rent-to-own transaction to consumers who do not qualify for financing from the traditional retailer through kiosks within retailer’s locations.
Take a look at the 1-year chart of Rent-a-Center (Nasdaq: RCII) below with the added notations:

RCII had a rough go of things from October through March. Since that low, the stock appears to have formed a double bottom (green) price pattern. The pattern is as simple as it sounds: Bottoming, rallying up to a point, selling back off to a similar bottom, and then rallying back up again.
As with any price pattern, a confirmation of the pattern is needed. RCII would confirm the pattern by breaking up through the $30 resistance (blue) that has been created by the double bottom pattern.

The Tale of the Tape: After trending lower into March, RCII has formed a double bottom price pattern. A long trade could be entered on a break above the $30 resistance with a stop placed under that level.
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