Credit Corp (CCP) provides debt purchase and debt collection services. The business primarily focuses on the purchase of debt ledgers. Over the last few years, CCP has expanded into the US and this expansion is expected to drive much of its earnings growth.

“The chart of CCP below is a great example of a stock that is in a sustainable uptrend,” says Michael.

“Every time it makes a move higher, it then consolidates that move by trading sideways in a clearly defined range.

“We can see those ranges very clearly over the last several months. These ranges build on top of each other like a set of stairs – which is exactly what you want to see. The beauty of this sort of pattern is that the clearly defined ranges make it easier for investors to know when to buy or sell. Quite simply, you can buy shares when it moves above the current range and starts heading higher again. If it falls underneath the range, and therefore breaks support, then that is your sell signal,” Michael says.

So is CCP a buy?

“At the moment though, it is range bound and I rate CCP here as a hold. A break above $34 will be the start of a new rally and therefore the next buying opportunity,” he adds.

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