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Possible Bullish Inside Day Candle Pattern Detected for Encore Capital Group (NASDAQ:ECPG)

By Amy Schwartz

SmarTrend's candlestick scanner has spotted a possible bullish inside day candle pattern in Encore Capital Group (NASDAQ:ECPG) based on the price action in the company's shares. Yesterday's price range of $21.71 and $22.56 is within the prior day's high and low of the day. This trading action often signifies indecision by bulls and bears to drive prices higher or lower and often implies a possible change in trend. Traders and investors interested in shares of Encore Capital Group may want to consider an appropriate entry level in the event a reversal to the upside transpires. It is important to look for confirmation.

There is potential upside of 120.0% for shares of Encore Capital Group based on a current price of $22.40 and an average consensus analyst price target of $49.29. The stock should find initial resistance at its 50-day moving average (MA) of $25.92 and further resistance at its 200-day MA of $31.45.

Encore Capital Group, Inc. specializes in the collection, restructuring, resale, and securitization of receivable portfolios acquired at deep discounts.

Encore Capital Group share prices have moved between a 52-week high of $44.61 and a 52-week low of $16.09 and closed yesterday at 39% above that low price at $22.40 per share. Over the past week, the 200-day moving average (MA) has gone down 1% while the 50-day MA has advanced 1.8%.

SmarTrend recommended that its subscribers protect gains by selling shares of Encore Capital Group on May 10th, 2016 by issuing a Downtrend alert when the shares were trading at $24.78. Since that call, shares of Encore Capital Group have fallen 12.9%. We are now looking for when a new Uptrend will commence and will alert SmarTrend subscribers in real time.

Keywords: bullish am inside day candle encore capital group

Ticker(s): ECPG