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.
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