PRAA has recently broken below a textbook bearish rising wedge pattern, complete with negative divergences in place at the recent highs. Following the breakdown, PRAA (Portfolio Recovery Associates) made a backtest of the pattern from below and has since began moving impulsively lower, giving additional validation to the pattern. Although a reaction off the support zone (52.35-53.00) is likely, PRAA looks to offer an objective initial short entry here, bringing to a full position on a break below support. As such, PRAA will be added as an Active Short Trade at current levels. Stops should be commensurate with one’s preferred target (shown on this daily chart). The live, annotated chart can also be viewed by clicking here.
