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Portfolio Recovery Associates (
PRAA) is engaged in the business of purchasing, managing and collecting portfolios of defaulted consumer receivables, as well as offering accounts receivable management and payment processing services. This stock closed up 3.5% at $149.31 in Wednesday's trading session.
>>5 Bargain Bin Stocks to Buy in 2013
From a technical perspective, PRAA gapped sharply higher here into breakout territory above $150.31 and above its 50-day moving average at $150.42 with above-average volume. This move is quickly pushing shares of PRAA within range of triggering another major breakout trade. That trade will hit if PRAA manages to take out some near-term overhead resistance levels at $159 to $159.68 and then once it clears its 52-week high at $163.87 with high volume.
Traders should now look for long-biased trades in PRAA as long as it's trending above its 50-day at $150.42 or above Wednesday's low of $149.04, and then once it sustains a move or close above those breakout levels with volume that's near or above 113,270 shares. If that breakout hits soon, then PRAA will set up to enter new 52-week-high territory above $163.87, which is bullish technical price action. Some possible upside targets off that breakout are $170 to $180.
To see more stocks rising on unusual volume, check out the
Stocks Rising on Unusual Volume portfolio on Stockpickr.
-- Written by Roberto Pedone in Delafield, Wis.
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