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Possible Bullish Inside Day Candle Pattern Detected for Rent-A-Center (NASDAQ:RCII)

By James Quinn

SmarTrend's candlestick scanner has spotted a possible bullish inside day candle pattern in Rent-A-Center (NASDAQ:RCII) based on the price action in the company's shares. Yesterday's price range of $12.34 and $12.65 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 Rent-A-Center may want to consider an appropriate entry level in the event a reversal to the upside transpires. It is important to look for confirmation.

Rent-A-Center share prices have moved between a 52-week high of $40.80 and a 52-week low of $9.76 and closed yesterday at 29% above that low price at $12.63 per share. In the last five trading sessions, the 50-day moving average (MA) has climbed 1.0% while the 200-day MA has slid 1.5%.

Rent-A-Center, Inc. operates franchised and company-owned Rent-A-Center and ColorTyme rent-to-own merchandise stores. The Company's stores offer home electronics, appliances, furniture, and accessories under flexible rental purchase agreements. Rent-A-Center operates across the United States and Puerto Rico.

There is potential upside of 120.1% for shares of Rent-A-Center based on a current price of $12.63 and an average consensus analyst price target of $27.80. Rent-A-Center shares should first meet resistance at the 50-day moving average (MA) of $14.56 and find additional resistance at the 200-day MA of $18.64.

SmarTrend recommended that its subscribers protect gains by selling shares of Rent-A-Center on May 16th, 2016 by issuing a Downtrend alert when the shares were trading at $12.76. Since that call, shares of Rent-A-Center have fallen 3.8%. 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 rent-a-center

Ticker(s): RCII