If you look at a 2 year chart, this stock is working on a cup with handle pattern. Many stocks breakout from this pattern and soar to new highs. In the short term, the MACD and Williams %r indicate this stock is going higher from here. Looks like a great opportunity, that may not happen again. Check the interactive chart in Yahoo finance and draw your own conclusion.
The charts look mixed in my eyes, but there is limited downside (I BELIEVE). We formed a nice base down around $6, then we were able to move up towards 9, but then we headed back down. I dont see us testing 5s again anytime soon, however, there is a textbook H&S top that formed in the 1yr charts. Shoulders at 7.75 and the head up at 9s!
HOWEVER, breaking that $8 resistance wont be too hard, but staying there might be harder, if we can get soem good news and head north of $8, with a few decent quarters, we might be able to see 9s again. This is a growing company, and they are wellllllll positioned for the future. They learned from 2009 and they are balancing their portfolio to be safe while their competitors will have to take the riskier loans.
CPSS will be a great stock for the years ahead.