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Possible Bearish Inside Day Candle Pattern Detected for Regional Managem (NYSE:RM)

By Nick Russo

SmarTrend's candlestick scanner has spotted a possible bearish inside day candle pattern in Regional Managem (NYSE:RM) based on the price action in the company's shares. Yesterday's price range of $15.25 and $16.72 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. Owners of Regional Managem may want to consider a possible hedge in the event a pullback occurs. Look for confirmation in the next few trading days.

Over the past year, Regional Managem has traded in a range of $10.42 to $34.85 and closed yesterday at $15.94, 53% above that low. Over the last five market days, the 200-day moving average (MA) has gone down 0.8% while the 50-day MA has declined 5.4%.

Regional Management Corp. offers consumer finance services. The Company extends credit primarily to people who have limited access to consumer credit from banks, savings and loans, credit card companies, and other traditional lenders. The loans are on a fixed rate, fixed term basis with fully amortizing equal monthly installment payments and repayable at any time without penalty.

Regional Managem has overhead space with shares priced $15.94, or 57.3% below the average consensus analyst price target of $37.33. The stock should run into initial resistance at its 50-day moving average (MA) of $17.55 and subsequent resistance at its 200-day MA of $25.80.

SmarTrend recommended that subscribers consider buying shares of Regional Managem on April 13th, 2020 as our proprietary SmarTrend analytics indicated a new Uptrend was in progress when shares hit $14.67. Since that recommendation, shares of Regional Managem have risen 14.9%. We continue to monitor RM for any potential shift so investors can protect gains and will alert SmarTrend subscribers immediately.

Keywords: bearish am inside day candle regional managem

Ticker(s): RM