Commentary: When it comes to credit service companies, most consumers first thoughts are on the credit card companies like American Express Company (NYSE:>7 Tools Of The Trade

For instance, First Cash Financial Services, Inc. (Nasdaq:>base it has been building for a few months. A >Channeling: Charting A Path To Success)

Nelnet, Inc. (NYSE:>false breakdown. It had been forming a base on base pattern (where a consolidation occurs just above a prior consolidation) until attempting to breakout a few days ago. NNI has been holding above the breakout area and the first level to watch would be the $20 area. A move below this area would signal a false breakout and suggest that further consolidation would be necessary.

Dollar Financial Corp. (NasdaqGS:>resistance for the past month and was able to clear it a few days ago. Volume was higher on the breakout and DLLR is testing the area as >The Anatomy Of Trading Breakouts)

Encore Capital Group Inc. (NasdaqGS:http://simulator.investopedia.com/stocks/ECPG?partner=COTW04">ECPG) purchases and manages charged-off consumer receivable portfolios. This stock is still below recent highs, but could be on the verge of a breakout attempt. ECPG has had a volatile few months of trading, with several sharp rally attempts, followed by lower volume pullbacks. ECPG has been settling down as volatility decreases and had been respecting a trendline as resistance on its most recent rally attempts. ECPG was able to clear this level earlier this week, and if it can clear its February highs, then it should lead to a test of its December highs soon thereafter. This is a volatile stock, so traders should be cautious. One level to watch would be the recent lows in March and April. A break below this level would signal a breakout failure and a probable test of support near $15.

Bottom Line
The stock market is full of companies that meet specific needs and operate in their own niche markets. Often, these groups will operate with a certain amount of non correlation to the markets. This would be one sector that could possibly hold up through general market weakness, or continue to perform well if the environment remains bullish. In either case, their individual charts are pointing to higher prices and they could be providing a good trading opportunity