Don't Ignore This Chart!

Devry Breaks 18 Month Downtrend

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Devry, Inc. (DV) topped at close to 50.00 during the fourth quarter of 2014 and it has spent the last 18 months declining steadily until reaching what now appears to be a bottom just above 15.00.  A positive divergence has emerged on its weekly MACD and volume trends also appear to have turned a corner and are now more bullish.  Check out the chart:

DV has had consecutive weekly closes above its 20 week EMA for the first time since the downtrend began.  Volume trends are improving and a SCTR break above 50 would likely signal the worst is behind this educational company.  Given the positive divergence, I'd initially look for a 50 week SMA test to reset its weekly MACD back to its zero line.  

Happy trading!

Tom

Tom Bowley
About the author: is the Chief Market Strategist at EarningsBeats.com, where he provides stock market education, guidance, and trading strategies using a unique combination of technical, fundamental, and historical analysis. Tom provides EarningsBeats.com members with four portfolios (Model, Aggressive, Income, and Value), all designed to beat the benchmark S&P 500, and a revolving Watch List of hundreds of companies reporting strong quarterly earnings (must beat both revenue and EPS estimates) and exhibiting technical strength as well. These companies comprise EarningsBeats' annotated Strong Earnings ChartList (SECL), from which Tom trades exclusively. Tom writes a Daily Market Report (DMR) for members to include an executive summary, market outlook, sector/industry watch, and trading ideas. Learn More
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