Cash America International (CSH) - provides specialty financial services to individuals. The Company offers non-recourse loans secured by tangible personal property, commonly referred as pawn loans, short-term unsecured cash advances and provides check cashing and related financial services. It also sells merchandise in its pawnshops, primarily the personal property forfeited in connection with its pawn lending operations. The Company is the nation’s largest provider of pawn loans in the world. The Company also offers unsecured cash advances to individuals, sometimes also referred to as payday loans through most of its pawn lending locations and in standalone cash advance locations.

Source: Marketwatch

Source: Bigcharts

The stock that is currently trading in a pattern known as a “rising wedge.” The technical term is often associated with bearish consequences. As the wedge trades in a tighter range, look for a powerful move to break out and away from the wedge in a more definitive manner. This will be the point at which you can enter a long (bullish breakout) or short position (bearish breakdown) on the stock.

In addition to the bearish signal, I have also noticed the early formations of a negative divergence between price and the Relative Strength Index (RSI). If the RSI continues to make lower lows while the price appreciates, you should take this as a warning sign that the stock is losing upward momentum.

On the MACD indicator, the red and green dots are placed for short term “sell” and “buy” points respectively. Many of the key indicators (MACD, DMI) are still pointing north on the one-year weekly chart so the bearish reversal may not appear for some time and will need to be closely observed.

Jutia currently does not recommend a position in this stock and is only referencing this security for technical information purposes only.