CREDIT ACCEPTANCE CORPORATION Opportunity DailyHello traders, CREDIT ACCEPTANCE CORPORATION is in a bullish push with strong buy volume issued and a large upside down hammer candle. On the TIMEFRAME M1 we see a maubozu with a large volume of exchanged purchase, it goes in the direction of higher of the bollinger. In order to test it then this zone will be yielded to arrive on the top of the stabilization zone. Great potential to breakout the price with the momentum at the same time, the area to reach a new one.
And reach the next high point (See TIMEFRAME H4) adjustment (on TIMEFRAME H1). Followed by two resistances before breakout of a stabilization zone seen that we are on the median it is very likely to break in force. The symbolic number of 439.00 is required not enough power to test the central midline of ANDREWS PITCHFORK.
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CACC trade ideas
CACC SHORT Credit non acceptance corpSo my first short and believe it or not I shorted this many moons ago at 40 covered at 20 but then went to single digits. The thesis has always been simple - They are a lender of last resort for auto buyers and yet the companies bonds are rated AAA - how do they do this - insurance on their stuff followed by reinsurance followed by reinsurance. Interesting story so when they were in the single digits for years about to go belly up they exclaimed "we found a new way to account for things that will help us reemerge" they sure as hell did. They report Wednesday after the close. I still believe this company is an accounting fraud. Look at the glowing consumer reviews they get as well.
www.consumeraffairs.com
possible big breaka close under $207.64 will break this lender to the auto industry and take it back towards $180.
Risk is well defined as a close over $220 so a risk/reward of 3:1 seems an appropriate to me.
Options are thin and expensive but limiting size or using a bear spread can be employed here...OZ