Since its peak in July 2011 just under 39, Ezcorp (NASDAQ:EZPW) lost over 75% of its market cap. But that may be about to change. The stock has been basing after that run lower in a range between 10 and 13.3. This consolidation has been going on for 7 months. So why would it change now? It may not but there are some things going on in the chart that suggest you watch to see if it does. First, the price is back to the 200 day SMA. It has not closed over that since March 2013, and not for any length of time since April 2012. Next, the other shorter SMA’s are below the price and it has built a nice short term base after breaking above them. The Bollinger® Bands are rising and the RSI and MACD are bullish, giving support to the upside case.
There are two key levels that should get you to open your wallet and spend some money on the stock. The first is a move over 13. This gives a target of 14.50 - higher on a measured move. The second is a break of that long term zone over 13.50.
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