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

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Tom Bowley
About the author: co-founded Invested Central in 2004 and served as the site's Chief Market Strategist for more than 10 years. Invested Central provides stock market education and guidance for those interested in making their own financial decisions. During his tenure at Invested Central, Tom co-hosted Market Open LIVE, a national radio broadcast that covered many of the largest markets across the U.S. In addition, he has spoken at various conferences throughout the United States and Canada and has taught thousands of traders across the globe how to trade equities more wisely with an emphasis on managing risk and intermarket relationships. Learn More
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