PRA Group, Inc. (PRAA) – Long
Entry – 29.70
Stop – 27.70
1st Target – 33.30
2nd Target – 38.60
PRAA provided two strong clues that it has found a bottom at its longer term ascending trendline. Earlier this month the stock received two separate analyst downgrades (10/4 and 10/10). In each case, PRAA reacted by opening lower only to have bulls step in to bid the stock back up within 1-2 days of the downgrade.
On Friday, PRAA traded up near the highs of the recent price range and above the top of the short term triangle. We’re anticipating follow through higher this week with plenty of time left for more upside prior to the stock’s earnings release which is tentatively schedule for 11/07 before the bell.
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