JimMakos

PRAA stock price is testing a key support level

Long
BATS:PRAA   PRA Group, Inc
0
Here is the 4-hour chart of Portfolio Recovery Associates Inc. http://goo.gl/xXAYwl

Why I'd go long:

1. Key round number ($50).
2. Found support before (July and August).
3. Support confirmation on the 4-hour chart with bullish candlestick .
4. Volume increase.
5. Bounce off the lower band of the downward trending channel.

If I bought at $52 and set a stop loss of $2 per share, I'd sell 70% of my position at $54 for a 1:1 risk/reward ratio trade. I'd move the stop loss to breakeven point and would be looking to close 20% of the position 10 dollars higher. That would leave out 10% of my position for long-term gains.

Will you be trading PRAA during holidays?

Disclaimer

The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.