Credit Acceptance Shows Improved Relative Strength, but Still Shy of Benchmark
August 31, 2023: Credit Acceptance Corp. (CACC) showed improved relative strength on Wednesday, but the stock was still shy of its 50-day moving average. The stock rose 1.8% to $431.50 but is still down about 20% from its all-time high of $539.50 in March.
The relative strength index (RSI), a momentum indicator, rose to 56.8 on Wednesday, its highest level since May. However, the RSI is still below the 70 level, considered overbought.
The stock’s relative strength is improving, but it is still insufficient to put it in a buy zone. Investors should wait for the store to break above its 50-day moving average before buying shares.
Actionable Takeaways:
- Investors interested in Credit Acceptance stock should wait for the stock to break above its 50-day moving average before buying shares.
- Investors should also keep an eye on the stock’s relative strength, which should continue to improve before the stock makes a sustained move higher.
Practical Takeaways for Businesses:
- Businesses that sell goods or services to consumers likely to finance their purchases with Credit Acceptance should monitor the stock’s performance. If the stock continues to rise, it could signal increased demand for the company’s products or services.
- Businesses should also consider using Credit Acceptance as a financing partner for their customers. Credit Acceptance offers a variety of financing options that can help companies sell more products and services.
- The improvement in Credit Acceptance’s relative strength is a positive sign for the company. However, the stock is still not in a buy zone. Investors should wait for the store to break above its 50-day moving average before buying shares.
