DFC Global Corp (NASDAQ: DLLR)

DFC Global Corp., through its subsidiaries, provides retail financial services to unbanked and under-banked consumers, and small businesses. The company’s primary products and services include unsecured short-term consumer loans, secured pawn lending, check cashing, gold buying, and Western Union money transfer and money order, as well as foreign currency exchange, reloadable VISA prepaid debit cards, and electronic tax filing. It also offers military installment loan and education services, such as fee based services to enlisted military personnel applying for loans to purchase new and used vehicles. The company provides its products and services through retail storefront locations, as well as through the Internet, mobile phone, and other remote platforms. As of August 22, 2012, it operated through a network of approximately 1,400 retail storefront locations. The company operates its locations primarily under the Money Mart, The Money Shop, InstaCheques, Suttons and Robertsons, The Check Cashing Store, Sefina, Helsingin Pantti, MoneyNow!, and Super Efectivo brand names in the United Kingdom, Canada, the United States, Sweden, Finland, Poland, Spain, and the Republic of Ireland.

To analyze the company’s stock for potential trading opportunities, please take a look at the 1-year chart of DLLR (DFC Global Corporation) below with my added notations:

1-year chart of DLLR (DFC Global Corporation)

Prior to April, DLLR had been holding a key level of support at $15 (blue), which it eventually broke. Since then, the stock has consolidated sideways while finding support at $13 (green). DLLR has already hit the previous $15 level of support once as resistance, but a break back above that $15 level should mean higher prices for the stock.

The Tale of the Tape: DLLR has a key level at $15 and $13. A long position could be entered at $13 or on a break back above $15. A short play could be made on a break below $13.

Would you like assistance in making your TBS trades? If so, email me at Christian@yolopub.com and let’s talk about working together one on one!

Before making any trading decision, decide which side of the trade you believe gives you the highest probability of success. Do you prefer the short side of the market, long side, or do you want to be in the market at all? If you haven’t thought about it, review the overall indices themselves. For example, take a look at the S&P 500. Is it trending higher or lower? Has it recently broken through a key resistance or support level? Making these decisions ahead of time will help you decide which side of the trade you believe gives you the best opportunities.

No matter what your strategy or when you decide to enter, always remember to use protective stops and you’ll be around for the next trade. Capital preservation is always key!

Good luck!

Christian Tharp, CMT