As of the close of trading, momentum has dropped below the 0 line and the MACD is below the EMA trigger indicating a bearish trend is trying to set in. This is further confirmed by the RSI(14) dropping from 62.08 to 53.33.

We saw similar technicals for the RSI(14) and MACD on October 1, then the pps did a reversal and climbed for seven days. It doesn't really bother me that the momentum has dropped so far beneath the 0 line to -0.31. It dropped to that level recently, on September 10, while the MACD was in a bearish position then did a reversal shortly thereafter.

I am watching this one to see which has the most influence here - the RSI(14) or the momentum.

While the pps was down -2.45% for Wednesday, it remained above the SMA20, 50 and 200 lines (0.39%, 4.86% and 12.15%). That's a good thing.

Check out the technical chart -

In late September the pps broke through a long-term resistance line defining the upper levels of a horizontal channel that the pps had been trapped in. It apears as though efforts have been underway by the pps since mid-June to transfer from a horizontal channel to an ascending channel, and it looks like the ascending channel may very well be taking on good shape.

About EZCORP, Inc.

EZCORP, Inc. lends or provides credit services to individuals who do not have cash resources or access to credit to meet their short-term cash needs. The Company offers pawn loans in 294 domestic pawn stores and 38 Mexico pawn stores. At these stores, the Company also sells merchandise, primarily collateral forfeited from its pawn lending operations, to customers looking for good value. In 477 EZMONEY stores and 71 of its domestic pawn stores, the Company offers short-term, non-collateralized loans or fee-based credit services to customers seeking loans. The Company operates in three segments. The EZPAWN US Operations segment offers pawn related activities in all 294 domestic pawn stores, and offers signature loans in 71 pawn stores and six EZMONEY stores. The Empeno Facil segment offers pawn related activities in all 38 stores in Mexico. The EZMONEY Operations segment offers signature loans in 471 EZMONEY stores in the United States.

Note: The author of this blog does hold shares in the company EZCORP, Inc. No payment or gift has been received for the writing of this article.

Tags: Ezcorp Ezpw Technicals

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